- BIG MARKET - GROWTH ENVIRONMENT INVEST KANSAI - ASIAN HUB One-window support for - RICH CULTURE investment in Kansai

INVEST KANSAI WEB SEARCH Introduction INVEST KANSAI With a long history as the heart of , Kansai is home to many traditional and historic cultural resources.

- Big Market Kansai has an economy that can rival many national economies around the world, with a wide array of industries based here.

- Growth Environment With a high concentration of world-class manufacturing companies, universities, research institutions, traditional high-skilled craftworks and craftsmanship in various fields, Kansai boasts a climate favorable for innovation.

- Asian Hub Asian countries account for a high percentage of Kansai’s foreign trade and foreign-affiliated companies operating in the region.

- Rich Culture As the birthplace of many traditional Japanese performing arts and cultural histories, Kansai is home to a large number of World Heritage sites, and attracts worldwide attention as a tourist destination.

This publication showcases various aspects of Kansai’s business environments. We hope that you will use this brochure as a supporting tool to invest in the region. Welcome to Kansai! Cover photo:“Kurotaki Fall in the Morning”(Hyogo) ©Tomato_249 (Licensed under CC BY 4.0) Photo on this page:“A Prayer in Fresh Green”(Shiga)©Kenichi_Inagaki(Licensed under CC BY 4.0) https://creativecommons.org/licenses/by/4.0/ 1 https://creativecommons.org/licenses/by/4.0/ INVEST KANSAI Contents Introduction・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 1 7. 1.What is Kansai? Alluring Sightseeing 7-1. Kansai, satisfying all kinds of tourists’ interests・・・ 15 1-1. Large Kansai economy・・・・・・・・・・・・・・・・・・・・・・・・・ 3 7-2. New style of tourism : “Industrial tourism”・・・・・・・・ 17 2.Highly Developed Infrastructure 7-3. Creating a comfortable environment for 2-1. Kansai connected to the world/Asia by many foreigners in Kansai・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ routes ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 4 18 8. Kansai’s Industrial Structure and Commerce 2-2. Location of the Kansai Region ・・・・・・・・・・・・・・・・・・ 5 8-1. Characteristics of manufacturing industries・・・・・・ 20 2-3. Kansai International Airport ・・・・・・・・・・・・・・・・・・・・・ 6 8-2. Trade Value by Region and Product・・・・・・・・・・・・ 21 9. Diversity of Foreign-Affiliated Companies 3.Great Intellectual Cluster Entering into Kansai 3-1. ・・・・・・・・・・・・ University/Research Institute Clusters 7 9-1. Foreign-Affiliated Companies Entering into 4. Industries Expected to Grow Kansai ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 22 4-1. Green Innovation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8 9-2. Examples of Foreign-Affiliated Companies in 4-2. Life Science Innovation ・・・・・・・・・・・・・・・・・・・・・・・・・ 9 Kansai ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 23 5. Attractive Industries 10. Support for Foreign Investment in Kansai 5-1. Diverse Industries in the Region of Diversity・・・・・・・ 10 10-1. Foreign Investment Support Systems in Kansai ・ 24 5-2. New Products/Services Developed in 10-2. Foreign Investment Support Programs by Local Kansai ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 11 Governments ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 25 5-3. Famous Entrepreneurs from Kansai・・・・・・・・・・・・・・ 12 10-3. Government Efforts to Promote Foreign 6. Well-equipped Business Environment Investment in Japan ・・・・・・・・・・・・・・・・・・・・・・・・・ 26 6-1. Asia’s Leading International Conference 10-4. Examples of Incentives Offered by Local Location ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 13 Governments ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 27 6-2. ・・・・・ Comfortable Working and Living Environment 14 Tourism-Related Websites of Kansai ・・・・・・・・・・・・・・・・・ 34 Photo on this page:“Yokokan Garden”(Fukui)©Fukui City(Licensed under CC BY 4.0) https://creativecommons.org/licenses/by/4.0/ 2 1. What is Kansai? INVEST KANSAI 1-1. Large Kansai Economy ●Kansai is an area that is located in the center of Japan and has a huge market with a population of approximately 21.62 million and a GRP of approximately $763.2 billion. The size of the Kansai economy alone is equivalent to that of Turkey (ranked 19th in the world). ●Kansai has international cities, such as , , and . Kansai’s compactness is an attractive point, as Kyoto and Kobe are about a 30-minute train ride from Osaka’s city center.

Kyoto World’s 4th most popular city World’s Best Awards 2017 “The World’s Top 15 Cities”

Comparable to #19 World’s 8th in the world Osaka most populated area Comparison of GDP: Second largest economy in Japan Fukui Kansai and other countries Shanghai 24,115 Netherlands 879

Kyoto 23,265 Shiga Mumbai Turkey 798 Hyogo

Kansai 21,617 Kansai 763 Osaka New York 21,575 Switzerland 701 Beijing 21,250 Sweden 571 Kobe (1,000)

(US$ billion) World’s 5th cleanest city Domestic Sources:2017 Statistical reports on land area of prefectures and Kansai share municipalities in Japan (Geospatial Information Authority of MBC Times Japan), Population based on Residential Basic Book (Ministry of “The 12 cleanest cities in the world 2015” Area (k㎡) (2017) 31,542 8.3% Internal Affairs and Communications; as of January 1, 2017), 2014 National Accounts (Cabinet Office), 2014 Annual Report on Prefecture Accounts (Cabinet Office) Population (1,000) (2017) 21,617 16.9% Note: GRP of Kansai = Derived from Fiscal Year 2014 nominal GRP of the region GRP,GDP (US$ billion) (2014) 763 16.3% Foreign exchange rate: ¥109.92/USD 3 2. Highly Developed Infrastructure INVEST KANSAI 2-1. Kansai connected to the world/Asia by many routes

● In 2018, the area is serviced by 1,366 flights* per week, which is a * Plan at the peak (September) of the 2018 summer schedule (including freight flights) record number of flights connecting Kansai to the rest of the world. ● Kansai plays a core role in Asia, developing airports and seaports to handle large volumes of cargo and large cruise ships as an international trade hub. 【Details of international passenger flights by destination area】 【International Flight Network】 Europe 28 flights weekly N. America 56 flights weekly ※including 36 flights to Hawaii

Tsuruga Port Asia 1,100 flights weekly Kumihama Port Miyazu port Port

Number of airline companies: 70 Kobe Port Number of countries (regions) served: 25 Port Osaka Port Others 35 flights weekly Number of cities served: 84 Kansai International Airport Source: Compiled based on Kansai Airports materials Number of weekly flights: 1,366(including freight flights) Wakayama Shimotsu Port *Plans for summer 2018 peak schedule (September) Photos provided by Kansai Airports Shingu Port 【Number of cruise ships stays at ports in Kansai】 Kushimoto Port

Photos provided by Kansai District Transport and Tourism Bureau, MLIT 【Regular foreign trade containers using Japanese ports】 Photos provided by Ocean Network Express Pte. Ltd. Asia and near areas: 148.5 ships/wk, N. America: 8 ships/wk, Kobe: 117 stays Kumihama: 1 stay Kushimoto: 2 stays Europe: 1 ship/wk, Maizuru: 39 stays Osaka: 50 stays Tsuruga: 5 stays Others: 8 ships/wk Himeji: 5 stays Shingu: 12 stays *As of May 2017 Miyazu: 2 stays Wakayama Shimotsu: 3 stays *Total of ports in Kansai served by regular oceangoing containers. *Based on port survey by Kansai District Transport and Tourism Bureau, MLIT Number of foreign trade container ships visiting Japan on for January-December 2017 regular sea lanes (ships/week) (MLIT) 4 2. Highly Developed Infrastructure INVEST KANSAI 2-2. Location of the Kansai Region

● Kansai has advanced air, railroad, and road transportation networks. ● Kansai has established means of transportation, ensuring easy access to everywhere in Kansai and major domestic cities throughout Japan. Domestic Network 1 hour and 50 minutes 1 hour 2 hours and 🚄🚄 30 minutes 7 hours and 🚗🚗 30 minutes Osaka 50 minutes 2 hours 1 hour

Fukuoka 2 hours and 4 hours 30 minutes 1 hour and 6 hours 🚄🚄 30 minutes Aviation:✈ : Expressway: 🚄🚄 🚗🚗 5 2. Highly Developed Infrastructure INVEST KANSAI 2-3. Kansai International Airport ●Kansai International Airport (KIX) located in the center of Kansai and Japan is an urban airport, offering a high level of convenience. ●KIX provides access to 52 Asian cities, and has 19 international LCCs connecting it to 24 cities, the largest access among all the other domestic airports.(as of 2018 summer scedule)  It is a 24/7 international cargo hub, connecting Asia and the rest of the world.  KIX Terminal 2, dedicated to LCC fights, was expanded in January 2017, in expectation of the airport’s further development. «The only one in Japan!» «Low-temperature warehouse for pharmaceutical products»  24-hour airport with multiple 4,000m-class runways  A single warehouse, dedicated to packing and storing pharmaceutical products at controlled temperature, can flexibly handle mass pharmaceutical imports and exports!

Flight network to 84 cities in 25 countries *including freight flights Shared temperature- Cooling dolly Drug export packaging 24/7 full scale operation, with reduced lead time by using late-night controlled warehouse for facility (KIX-Medipac) flights! pharmaceutical products Features of Terminal 2 «Smart Security System» «Walk-through shopping area» Japan’s first in the reduction of safety inspection time Japan’s first in the introduction of a walk-through style duty-free through smart security! Diverter system shopping area to boost passengers’ consumption! (Filtering out baggage Rechecking monitor judged to be (rechecking baggage once judged unacceptable) to be unacceptable)

X-ray scanner

Automatic tray-returning Able to handle the baggage system items of four passengers at once

Photos provided by Kansai Airports https://www.kansai-airport.or.jp/en 6 3. Great Intellectual Cluster INVEST KANSAI 3-1. University/Research Institute Clusters

 Kansai is home to a cluster of prestigious universities and research institutions.  Distinctive research and development bases have been formed and a large number of prestigious universities are clustered, and industry-university cooperation is making progress.  Kansai has produced a number of Nobel Prize winners. Furthermore, overseas institutions under industry-university cooperation are located in Kansai. [Main research and development bases and overseas institutions under industry-university cooperation in Kansai] [Industry-university joint research spending] ( ) In terms of monetary amount, 23% of industry-university joint Germany Fraunhofer research throughout Japan is conducted in Kansai, and the amount ( ) [Saito (International Culture Park)] AIST of money received per research project is higher than the national National Institute of Biomedical Innovation, Health and Nutrition (NIBIOHN) average. (UK) Oxford University Bio-Incubator (in cooperation with , etc.) The amount of money received Japanese Red Cross Kinki Block Blood Center Industry-university joint per research project Innovation / OUI Various companies’ R&D facilities research across the nation 2000 2500 3000 JAPAN OFFICE (Value-basis) (Thousand yen) Kansai [Kansai Cultural and Academic Research City] 23% Kansai 2,813 [Harima Science Garden City] Cluster of nearly 130 public and corporate research institutes Nation 2,372 SPring-8 Research Institute of Innovative Technology for the Earth wide (RITE) SACLA Advanced Telecommunications Research Institute International (ATR) Ministry of Education, Culture, Sports, Science and National Institute of Information and Communications Technology Implementation status of industry-university Technology ( NICT) cooperation and performance of joint research(on an National Institutes for Quantum and Radiological Science and institution-by-institution basis) (FY 2016) Technology (QST) SPring-8/SACLA ⓒRIKEN Blue LED iPS cell [Kobe Biomedical Innovation Cluster]

Device manufacturer HIRANO TECSEED CO., Ltd Nishimura MFG. Co., Ltd. Component/ material manufacturer Yodogawa Precision Co., Ltd. Long-life storage cell “Redox Flow Battery” Tanaka Chemical Corp. Battery manufacturer Panasonic Corp. © Iwatani Corporation Outer appearance and the event space of “Iwatani Hydrogen Station at Kansai International Airport” GS YUASA National Institute of Technology and Evaluation (NITE) Major companies related to fuel cells in Kansai] ➢Fuel cell manufacturers Panasonic, Kyocera, Hitachi Zosen ➢Fuel cell-related device and parts manufacturers Inside of the Fujikin, Samtech, FIS, Takaishi Industry, TECHNO , facility Yamato H2Energy Japan, KAJl TECHNOLOGY, TOYOBO, NIPPON SHOKUBAI ➢ Home-use fuel cell Hydrogen manufactures and storage companies cogeneration system Iwatani Corporation, Kawasaki Heavy Industries, AIR WATER INC., National LABoratory for advanced energy storage technologies KOBELCO ECO-SOLUTIONS ➢Inspection and evaluation equipment manufacturers The world’s largest constant-temperature battery test and evaluation facility (testing up to container sized storage battery systems) Shimadzu Corporation, HORIBA LTD., Round Science Inc 8 4. Industries Expected to Grow INVEST KANSAI 4-2. Life Science Innovation  Kansai has been a base for medicine since ancient times, with a large cluster of pharmaceutical company headquarters.  A large number of foreign companies and medical equipment manufacturers are located in Kansai, where the world’s first therapeutic agent was developed using clinical research that applied iPS cells. A large cluster of pharmaceutical company A large number of foreign companies are headquarters advancing to Kansai as well Kaigen Pharma NIPRO Nippon Boehringer Ingelheim

AstraZeneca K.K. Omron Ono Pharmaceutical Eli Lilly Japan K.K. Takeda Pharmaceutical Shimadzu Corporation

[Share of production of non- Fuso Pharmaceutical Industries Sysmex pharmaceutical products] [Share of shipment value of Santen Pharmaceutical Medical equipment manufacturers pharmaceutical products] concentrated in this area Kansai Concentration of research and development Kansai bases and core institutions 20% 31% Kansai Branch of Pharmaceuticals and Medical Devices Agency (PMDA) Others West Japan Supervising Department of Japan Agency for 69% Medical Research and Development (AMED) Others Center for iPS Cell Research and Application, Kyoto University 80% (Excluding Fukui) Saito Life Science Park Production Statistics for Pharmaceutical Industry in 2016,” Kobe Medical Industry Development Project Ministry of Health, Labour and Welfare Figure 1: Pharmaceutical production, import, shipment, RIKEN and inventory value by prefecture Figure 26: Non-pharmaceutical production, import, shipment, and inventory value by prefecture

Regenerative medicine, discovering disease mechanisms, drug discovery, etc. 9 5. Attractive Industries INVEST KANSAI 5-1. Diverse Industries in the Region of Diversity

- Textiles Composition ratio (%) of Kinki Region’s (knit fabric) (nominal) GDP by industry - Traditional industries - Textiles (lacquer ware) Agriculture, (dyeing and Producers of private non-profit forestry and finishing) services to fishery: 0.4 - Electronics & households: 2.4 measurement Producers of Mining: 0.0 - Commerce government (electronic Manufacturing: services: 7.7 components) (wholesale) 19.5 - Living products - Electric machines (leather tanning) (electric household - Commerce - Heavy industry appliances) (wholesale) (steel industry) Services: 20.3 - Services Construction: 4.8 - Machinery (transport Electricity, gas & machinery water supply: 2.5 and instruments) Information & - Wearing articles telecommunicati Wholesale & (fur, kimono accessories ons: 4.7 retailing: 13.6 - Textiles and textiles to wear) (knit fabric) Transportation: 5.1 - Petroleum products Finance & Real estate: 15.3 - Processed food insurance: 3.8

The industries listed above are those with high coefficients of specialization in terms of the number of people engaged in them, based on 2014 Economic Census for Business Frame by the 2014 Report on Prefectural Accounts (by Statistics Bureau, the Ministry of Internal Affairs and the Cabinet Office) Communications (Processed by the Kansai Bureau of Economy, Trade and Industry) 10 5. Attractive Industries INVEST KANSAI 5-2. New Products/Services Developed in Kansai

 1902: Spiral-shaped mosquito coil (Dainihon Jochugiku, Osaka) The company has greatly contributed to the prevention of malaria and other infectious diseases from mosquitoes. The spiral-shaped product was a revolutionary design by the company.  1912: (Yoshimoto Kogyo, Osaka) Japan’s first company to make a business of comedy. Founded by a pioneering female entrepreneur, it has Photos provided by, and published in cooperation with grown into an entertainment company with a wide variety Daini Bungeikan theater Sei Yoshimoto Dainihon Jochugiku Co., Ltd. of offerings in Asia. Photos provided by Yoshimoto Kogyo Co., Ltd.  1958: -go-round (Genroku Sushi, Osaka) Sushi, a representative Japanese food, became available at a sushi-go-round. This has made it possible for people all over the world to enjoy sushi.  1958: Chicken (Nissin Food Products, Osaka) (The First Instant Noodles in the World) Photos provided by Genroku Industry Co., Ltd 1971: CUPNOODLES(Nissin Food Products, Osaka) (The First Cup-type Instant Noodles in the World) Photos provided by, People in many countries still eat CUP NOODLES, which has wide and published in cooperation with appeal across dietary traditions. NISSIN FOODS HOLDINGS CO., LTD.  1967: Automated ticket gates system (Tateisi Electric Manufacturing (now Omron), Kyoto) World‘s first system to solve commuting rush hours, which was a social issue at the time. This system enabled efficient mass transit and has greatly contributed to the modernization of urban Photos provided by, and published in cities. cooperation with OMRON Corporation  2002: The complete farming of bluefin tuna (A-marine Kindai, Wakayama) A-marine Kindai – the first company in the world that succeeded in the complete farming of bluefin tuna. This allows the production of tuna that are in popular demand, thus Completely cultured bluefin tuna contributing to preventing decrease in the number of tuna. Photos provided by Kindai University 11 5. Attractive Industries INVEST KANSAI 5-3. Famous Entrepreneurs from Kansai

Konosuke Matsushita Kazuma Tateishi Genzo Shimazu

The founder of Matsushita Electric Industrial The founder of OMRON Corporation, Co., Ltd.(currently Panasonic Corporation), The founder of Shimadzu Corporation, a global an electronics manufacturer that produced a global manufacturer of general electronics. manufacturer of analytical and measuring a number of “world’s first” innovative instruments. He succeeded in launching Japan’s Kazuo Inamori products, such as the automatic ticket gate first manned balloon. system. Masahiro Shima Kihachiro Onitsuka The founder of KYOCERA Corporation, a global manufacturer of general electronic The founder of Shima Seiki Mfg. Ltd., a leading parts. The founder of ASICS Corporation, manufacturer of horizontal knitting machines. Momofuku Ando a world-class supplier of sporting goods, including running and athletic shoes. Shinjiro Torii

Noriyuki Inoue The founder of Suntory, the manufacturer of He developed the first instant noodles The talented business manager who Yamazaki Whisky, which won the highest and cup noodles in the world. score in the Whisky Bible 2015 edition in the has developed Daikin Industries, Ltd. UK. The founder of Nissin Food Products Co., Ltd. into the world’s greatest comprehensive manufacturer of air-conditioning  In random order with honorifics omitted equipment. 12 6. Well-equipped Business Environment INVEST KANSAI 6-1. Asia’s Leading International Conference Location  Kansai has a large number of leading international conference halls, and is Asia’s leading international conference location.  Kansai provides a comfortable environment not only for MICE but also for business and life. Kyoto International Conference Center

Provided by Kyoto International Conference Center Kobe International Conference Center Mikatagoko(Fukui) Provided by Kobe City Provided by Fukui Prefectural Tourism Mishima Pond (Shiga) Federation ©Maibara City(Licensed under CC BY 4.0) https://creativecommons.org/licenses/by/4.0

If you travel just outside this Japan’s biggest international exhibition space, economic center, INTEX Osaka you will find Provided by INTEX Osaka HP beautiful and Nara Kasugano International Forum inspiring natural and IRAKA Theatre cultural treasures. Provided by [Number of international conferences by country in Asia- Pacific region Osaka International Convention Center Japan received the top ranking for 6 straight years since 2012] (Grand Cube Osaka) Statistics on international conferences (ICCA) Provided by 2017, JNTO Kansai Hongu Onsen(Wakayama) 20% Provided by Tanabe City Kumano Tourism Bureau Kansai held 20% of all international Others conferences in Japan Mountain with Arida mandarin 80% orange trees (Wakayama) ©Arida City(Licensed under CC BY 4.0)https://creativecommons.org/licenses/by/4.0 13 6. Well-equipped Business Environment INVEST KANSAI 6-2. Comfortable Working and Living Environment

Investment-related deregulation In organizing the Working Group for Revising Regulations and Administrative Procedures in the Council for Promotion of Foreign Direct Investment in Japan, the Japanese government is considering simplifying regulations and administrative procedures that may represent hurdles for foreign companies to overcome when investing in Japan. The government’s coordination with related ministries and agencies is underway for that purpose. * Concrete measures to be implemented by ministries and agencies (formulated on April 24, 2017)  Measures related to incorporation and registration  Measures related to residence status  Establishment of a one-stop service system for administrative procedures  Information sharing in non-Japanese languages, and consultation service for foreign companies  Import-related measures For more details or the latest update, visit: http://www.invest-japan.go.jp/policy/simplify_regulations_and_procedures/en_index.html

Providing living information for Comparing business and living costs people from abroad in Tokyo and Osaka A collection of living information, including information about Note) The cost levels in Osaka are used as the representative of Kansai. hospitals, banks, cell phones, electricity and gas supply, is Costs in Osaka against those provided based on the decision by the Council for Promotion of in Tokyo assumed as 100 Foreign Direct Investment in Japan. Office rents 58.2 “Living in Japan” (JETRO website) → https://www.jetro.go.jp/en/invest/living.html Private 68.7 housing rents Living information by prefecture is also posted. Labor costs 82.9

“Regional Information Living Information CBRE’s “Vacancy Rates and Average Offer Rents Nationwide” (2018 first quarter) for Foreigners” (JETRO website) “Retail Price Survey (Trend Survey)” of the Statistics Bureau, Ministry of Internal → Affairs and Communications (March 2018) https://www.jetro.go.jp/en/invest/region/living.html “Monthly Labor Survey (Regional Survey)” of the Ministry of Health, Labor and 14 Welfare (averages of 2016) 7. Alluring Sightseeing INVEST KANSAI 7-1. Kansai, satisfying all kinds of tourists’ interests

As the birthplace of a wide variety of performing arts and cultural elements, Kansai boasts a high concentration of all kinds of attractive tourist spots, including many World Heritage sites, varied food culture, seasonal destinations rich with natural features, and unique vibrant cities. ■  The birthplace of many artistic & cultural elements Home to many World Cultural Heritage sites Noh

Ikebana

Photo provided by Nara Prefecture Photo provided by Nara Visitors Bureau Historic Monuments of Ancient Nara [Nara Prefecture] (Horyu-ji Temple, the world’s oldest existing wooden building and buddhist monuments .) Photo provided by Nara Prefecture Tea ceremony

Photo provided by WAK JAPAN Co.

Photo provided by Nijo-jo Castle Office Photo provided by Himeji City Historic Monuments of Ancient Kyoto [] Himeji-jo []

Photo provided by WAK JAPAN Co. Kansai is home to 72% of National-Treasure-designated For more details, visit the website run by structures, and 51% of Kansai Tourism Bureau, “O-KO-SHI-YA-SU” National-Treasure-designated Welcome to Kansai, Japan. fine arts and crafts.

“Statistical Abstract” of the Ministry of Education, http://kansai.gr.jp Culture, Sports, Science and Technology (2018)

Photo provided by Kansai Tourism Bureau This page was created in cooperation with Kansai Tourism Bureau. Kumano Kodo pilgrimage route [] 15 INVEST KANSAI Varied food culture

Kyoto cuisine [Kyoto Prefecture] [Hyogo Prefecture] [Osaka Prefecture] Ramen [various places] Rich seasonal natural features

Hozu-gawa River boat ride Cherry blossoms on Mount Yoshino Deer in Nara Park Tojinbo [] in the snow in Kameoka [Nara Prefecture] [Nara Prefecture] [Kyoto Prefecture] Large cities with unique identities KANSAI ONE PASS: the best friend of Kansai travellers! KANSAI ONE PASS is an IC-card-type passenger ticket only for international tourists. With only this card, you can take all trains and buses in Kansai. This is a very convenient ticket with special benefits. KANSAI ONE PASS is available at main stations in Kobe Port Tower Kansai, including the Kansai [Hyogo Prefecture] Airport Station.

Umeda Sky Building, Price: 3,000 yen Tsutenkaku and Shinsekai Rechargeable at (This page including photos was created in cooperation with ©Tezuka Productions 16 Kansai Tourism Bureau) [Osaka Prefecture] ticket machines 7. Alluring Sightseeing INVEST KANSAI 7-2. New style of tourism: “Industrial Tourism”  Industrial tourism, which provides on-site learning, experiences and idea exchanges on industries and companies, has been attracting attention.  Kansai has a number of these industrial tourism facilities and more than 16 million people annually visit Kansai from inside Japan and overseas.

http://www.kansai.meti.go.jp/english/tvlist/tvtopeng.html On the website above, you can find about 500 industry-related facilities in the Kansai area (available for factory tours, offering company museums, and production experiences, etc.) !!

17 Photo on this page: “Night view of a group of plants in Takaishi City” © Takaishi City(Licensed under CC BY 4.0) https://creativecommons.org/licenses/by/4.0/ 7. Alluring Sightseeing INVEST KANSAI 7-3. Creating a comfortable environment for foreigners in Kansai

 App that helps connect your mobile device  Multilingual service to a free Wi-Fi network in various places in Sightseeing with empty hands Kansai Tourists can temporarily leave their baggage at airports, stations, shopping facilities, etc., or have their baggage delivered to the airport, station, hotel, etc.

KANSAI Wi-Fi (Official) (Image provided by Union of Kansai Multilingual speech translation app “VoiceTra” Governments) (Images provided by the National Institute of Information and Communications Technology (NICT))  Yen-cash withdrawal service

«For cash cards issued abroad» (Image provided by Kansai Tourism Bureau)

Tourist guide and medical guide  through internet phone: IC-card-type passenger ticket with special “Osaka Call Center” benefits (Images provided by the Osaka “ ” Convention & Tourism Bureau) KANSAI ONE PASS (Image provided by Kansai Tourism Bureau) (Images provided by Japan Post Bank and Seven Bank)

©Tezuka Productions  Foreign money changing service  Taxi with non- service

Nara City Kansai Foreign money changing counter and International “International Visitors Taxi” foreign money changing machine “QR Translator” Airport (Photo provided by the Osaka Taxi Center) (Images provided by the Senshu Ikeda Bank) (Images provided by PIJIN) 18 7. Alluring Sightseeing INVEST KANSAI 7-3. Creating a comfortable environment for foreigners in Kansai

 Diverse night-time economy  Experience of Japanese culture and handicraft

“JAPAN NIGHT WALK TOUR” (Photo provided by IMPREGION CO., Nonverbal performance “GEAR” Ltd.) (Photos provided by ART COMPLEX GROUP) Sutra-copying and vegetarian meal Plastic food replica and (Photos provided by Japan Japanese lantern making Association for Temple & Shrine (Photos provided by  Providing a safe and secure living environment Tourism) Design Pocket Co., Ltd.)  Information for foreigners

Medical interpretation services provided (website and free magazine in English) remotely by medical interpreters who have professional skills and knowledge

Medical interpretation services through tablet PCs (Photo provided by Dream Catcher Inc.) Kansai Finder, a comprehensive Free magazine Kansai Scene information website covering popular (Photos provided by Kansai Scene) Halal certified food factory places, personal ads and job offers (Photos provided by HINOMOTO (Photo provided by Kansai Scene) SHOKUSAN Co., Ltd.) 19 8. Kansai’s Industrial Structure and Commerce INVEST KANSAI 8-1. Characteristics of manufacturing industries ●Compared with the nationwide average, Kansai puts more emphasis on chemicals, electric machines and steel. Shipments by product and industry in Kansai and nationwide

Plastics Chemicals Steel Industrial Electronics Electric Textiles Metal Transportation Other machines Foods products machines & devices machines Kansai 2.1 11.8 3.8 4.6 2.3 7.6 2.8 6.2 6.3 7.3 2.1 3.6 7.6 1.5 8.8 8.5 4.0 2.2 2.2 1.9

Beverages, Printing Pulp & paper Petroleum & Ceramics, Nonferrous General Machines for Information & tobacco and coal products cement metals purpose business use communication and glass machines machines feed Primary material industries Processing and assembly industries Daily commodity industries

Rubber products Steel Industrial Electronics Textiles Chemicals Plastics Electric Transportation machines Other Metal machines & devices Foods products machines Nationwide 2.4 9.0 3.8 3.9 2.4 5.2 2.9 4.8 3.7 6.0 2.4 4.8 5.4 2.2 21.5 9.4 3.21.3 1.3 1.0 1.7 Beverages, Pulp & paper Petroleum & Ceramics, Nonferrous General Machines for Information & Printing tobacco and coal products cement metals purpose business use communication feed and glass machines machines

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2016 Economic Census for Business Activity (by the Ministry of Internal Affairs and Communication and the Ministry of Economy, Trade and Industry) 20 8. Kansai’s Industrial Structure and Commerce INVEST KANSAI 8-2. Trade Value by Region and Product ●Asia represents a large portion of both exports from and imports to Kansai, in comparison to Japan as a whole, and thus Kansai has become a central Asian hub. Comparison of Exports by Region(2017) Comparison of Imports by Region(2017)

Asia 68.5% US EU Others Asia 56.8% US EU Others Kansai (of which China accounts for 25.8%) 13.2% 10.1% 8.1% (of which China accounts for 32.5%)9.0% 11.8% 22.4% Export Total Approx. 16.7 trillion yen Import Total Approx. 14.8 trillion yen

% US EU Others Asia 54.9 Asia 49.0% US EU Others Japan % % % % (of which China accounts for 19.0 ) 19.3 11.0 14.7 (of which China accounts for 24.5%)10.7%11.6% 28.7% National Export Total Approx. 78.3 trillion yen National Import Total Approx. 75.6 trillion yen

●Electric appliances, machinery and chemical products constitute a high percentage of exports from Kansai because global manufacturers in the fields of machinery (home appliances, motors, construction/agricultural machinery, etc.) and chemical products (medical products, plastics etc.) are located in the region.

Value of Exports from Kansai by Commodity(2017) Value of Imports to Kansai by Commodity(2017)

Electric Others appliances 18.0% Electric Metal products Others 16.1% 1.8% appliances 28.4% Nonferrous metal 29.2% 1.9% Transportation Mineral fuelsTrade Statistics, Osaka Customs equipment Total value Total value 14.7% Table for Kinki District Statistics 4.3% ¥16.7 trillion Steel ¥14.8 trillion Table for statistics within the 4.6% Clothing and Tsuruga Customs accessories Chemical Branch (Fukui Prefecture)(2017) Scientific and optical Chemical Machinery 7.3% products ※Total value of Machinery instruments products 22.9% 14.0% ※Total value of imports 4.9% exports from 8.7% 12.4% Foodstuffs to Japan:¥75.6 trillion Japan:¥78.3 trillion 10.8% 21 9. Diversity of Foreign-Affiliated Companies Entering into Kansai INVEST KANSAI 9-1. Foreign-Affiliated Companies Entering into Kansai

 U.S. and European companies comprise the largest portion of foreign-affiliated companies in Kansai. Asian companies also comprise 26% which is larger than the national average of 18%.  By type of industry, foreign-affiliated companies in the manufacturing sector (machinery, chemicals, pharmaceuticals, precision machinery, etc.) comprise approximately 36% of the industry, a significantly larger percentage compared to the national average of 22%.

Companies by country and region (2018) Companies by industry (2018)

Denmark 1.8% Others Machinery Singapore wholesale 1.8% 13.8% US Others 12.2% Switzerland 24.0% 2.7% 27.0% Machinery Hong Kong 8.1% 2.7% Taiwan Total Chemicals 3.2% Other services Total 6.8% France 3.6% 3.6% 222 222 Information, Italy Other manufacturing systems, software 5.0% Germany 4.5% 5.0% UK 15.8% Other wholesale Electrical machinery 5.4% South 11.3% wholesale 4.5% Korea China 7.7% 9.5% Chemicals Pharmaceuticals wholesale 3.6% 3.2% Foods wholesale Precision machinery Textiles and apparel 3.6% Precision machinery 3.2% wholesale wholesale 3.2%  Foreign-affiliated firms: Foreign capital of 20% or over (including branch offices) 3.2% Source: Foreign Companies CD-ROM 2018, Toyo Keizai Inc. 22 9. Diversity of Foreign-Affiliated Companies Entering into Kansai INVEST KANSAI 9-2. Examples of Foreign-Affiliated Companies in Kansai [Company name (prefecture(s)): country/region] Life science Tourism PEAK DMC Japan (Kyoto): Australia Bayer Yakuhin, Ltd (Shiga, Osaka, Hyogo): Germany Ctrip International Travel Japan Co., Ltd. (Osaka): China Tornier Japan K.K. (Hyogo): France Juneyao Airlines Osaka Branch (Osaka): China AstraZeneca K.K. (Shiga, Kyoto, Osaka, Hyogo): UK Tujia Japan Co., Ltd. (Osaka): China Abbott Japan Co., Ltd. (Kyoto, Osaka, Hyogo): USA Scenic Japan Tours Co., Ltd. (Osaka): India Eli Lilly Japan K.K. (Kyoto, Osaka, Hyogo): USA

Procurement bases Distribution and services B&M Japan Co., Ltd (Osaka): Hong Kong TÜV Rheinland Japan Ltd. (Osaka): Germany SHOBIDO CO LTD (Osaka): Macau IKEA Japan K.K. (Osaka, Hyogo): Sweden Chitose Trading Co., Ltd. (Osaka): China Decathlon Japan (Novadec Japon Co., Ltd.) (Osaka): France Daiko Trading Co., Ltd. (Osaka): China Haier Japan Sales Co., Ltd. (Osaka): China Ruten (Osaka): Taiwan Tata Consultancy Services Japan Limited (Osaka): India SIA Engineering Japan Corporation (Osaka): Singapore R&D and production bases AIG Japan Holdings KK (Osaka): USA BASF Japan Ltd. (Osaka): Germany Salesforce.com Co., Ltd. (Osaka, Wakayama): USA RECARO Japan Co., Ltd. (Shiga): Germany Note: The companies listed here have their HQ, a sales base or a research institute in Kansai. Galanz Japan Co., Ltd. (Osaka): China They are located in the prefectures shown in parentheses. Source : Foreign Companies Database 2016 (Toyo Keizai Inc.) and the company Nestlé Japan Ltd. (Hyogo): Switzerland data obtained from JETRO and O-BIC

Caterpillar Japan LLC (Hyogo): USA For more info, search Invest_in_Kansai-e_interviews 🔍🔍 The Procter & Gamble Company of Japan Limited (Shiga, Hyogo): USA 👆👆 http://www.kansai.meti.go.jp/3-1toukou/invest_in_kansai/e_interviews.html 23 10. Support for Foreign Investment in Kansai INVEST KANSAI 10-1. Foreign Investment Support Systems in Kansai  The Council for INVEST KANSAI is comprised of Kansai Economic Federation, JETRO Osaka, Federation of Chambers of Commerce and Industry in the Kansai Area (Osaka Chamber of Commerce and Industry), and Kansai Bureau of Economy, Trade and Industry. Its objective is to promote foreign investment in Kansai.  In the Council, as one-stop support, Invest Japan Business Support Center (IBSC) supports foreign companies planning to enter Kansai in various ways, including providing information and individual consultations. Website: INVEST Kansai Web Conceptual diagram of the Kansai region’s http://www.kansai.meti.go.jp/3-1toukou/invest_kansai/en/e_index.html investment promotion system Facilities • Temporary offices Foreign-affiliated companies (free of charge up to 50 business days) • Meeting rooms • Business libraries Kansai IBSC Consulting Economic JETRO Osaka • Advice for market access • Finding human resources Federation and offices Council for • Providing information on laws, various standards and INVEST KANSAI incentives • Estimation of costs to set up business INVEST KANSAI - One-stop support for investment in Kansai - JETRO Invest Japan Business Support Center, Osaka(JETRO IBSC Osaka) Federation of Chambers of Kansai Bureau of TEL: +81-6-4705-8660 FAX: +81-6-4705-8650 Commerce and Industry JETRO Invest Japan Business Support Center, Kobe (JETRO IBSC Kobe) Economy, Trade in the Kansai Area TEL: +81-78-231-3081 FAX: +81-78-232-3439 (Osaka Chamber of and Industry Commerce and Industry) JETRO Fukui TEL: +81-776-33-1661 FAX: +81-776-33-7110 JETRO Shiga The Council for INVEST KANSAI provides support such as TEL: +81-749-21-2450 FAX: +81-749-27-3750 providing information on investment incentives, factory JETRO Kyoto locations etc., as well as finding business partners with local TEL: +81-75-325-5703 FAX: +81-75-325-5706 governments, regional business communities and specialists. JETRO Wakayama TEL:+81-73-425-7300 FAX:+81-73-425-7310 24 10. Support for Foreign Investment in Kansai INVEST KANSAI 10-2. Foreign Investment Support Programs by Local Governments

 In Kansai, foreign investment support organizations belonging to local governments offer various kinds of one-stop services.  Osaka Business and  Kyoto Foreign Investment Promotion Committee (KIC) Investment Centre Kyoto Prefecture, Kyoto City, Kyoto Supporting foreign companies in an extensive Chamber of Commerce and Industry and detailed manner according to their needs O-BIC provides the following in multiple languages for foreign companies Kyoto Research Park (KRP) aiming to break into the Japanese market in Osaka, foreign government JETRO Kyoto Trade Information Center offices and economic organizations, and foreign-affiliated companies We provide foreign companies, foreign individual business persons and already located in Japan and aiming to expand their business to Osaka: researchers with information and support about Kyoto to help them start - Information on incentives given doing business in Kyoto. Osaka by governments Prefecture - Real estate information http://www.kic-kyoto.jp/ - Introductions to experts in corporate registration and the  Hyogo-Kobe Investment Support Centre (HKIS) acquisition of residence status - Introductions to the individuals Kobe City and Hyogo Other and companies specializing in Prefecture municipalities Osaka in Hyogo Osaka Chamber of interpretation, translation, market Prefecture City Commerce research, legislation, taxation and Hyogo Economic Development Center and Industry accounting Hyogo-Kobe Investment Support Center - Assistance in public relations One-stop Service http://o-bic.net/ and more Commercial JETRO real estate Relevant The Kobe Kobe Chamber of local Commerce institutions and Industry  IBPC Osaka Investment Promotion Project Promoting companies’ advancement in Hyogo and Kobe Assisting domestic and foreign companies’ advancement in We offer extensive and detailed support services according to the Hyogo Prefecture company’s needs for entering into Osaka, including introduction Support for opening new and additional factories and offices etc. of potential partners, providing information on investment We provide various types of information on Hyogo: not only information on incentives and temporary offices. industrial estates, suitable sites for factories, vacant land, offices for rent, etc., http://www.investosaka.jp/eng/ but also on administrative procedures needed when establishing a business in the area, employment, residences and everyday life. 25 http://www.hyogo-kobe.jp/best/index.php?easiestml_lang=en 10. Support for Foreign Investment in Kansai INVEST KANSAI 10-3. Government Efforts to Promote Foreign Investment in Japan

Incentives for foreign and foreign-affiliated companies

Act on Promotion of Japan as an Asian Business Center (Act on Special Measures to Promote Research and Development Business, etc. by Specified Multinational Enterprises)

Preferential measures, including reduced patent fees for global companies planning to set up a company in Japan to conduct new R&D projects and business operations. «Applications can be filed in English.»

Shortened investment procedures  Shortening the period of screening of advance notifications of direct inward investment, etc. in industries subject to regulations, from 30 days in ordinary cases to two weeks Assistance with fund raising * Applicable only to SMEs  Fund raising assistance offered by Small and Medium Business Investment & Consultation Co., Ltd. (Also applicable to incorporated companies with capital of 300 million yen or more)

Reduction of patent fees * Applicable only to SMEs

 50% reduction of screening and patent fees for patented invention

Acceleration of patent application screening

 Accelerating patent application screening and proceedings [Ordinarily around 22 months → shortened to about 2 months] (FY2011 result)

Acceleration of residence status examinations

 Accelerating screening for the Certificate of Eligibility for Status of Residence applied by foreign nationals who intend to work in Japan [Ordinarily 1 month → shortened to about 10 days] * See details at → http://www.meti.go.jp/english/policy/external_economy/investment/act_information.html «For Inquiries» Investment Facilitation Division, Trade and Economic Cooperation Bureau, Ministry of Economy, Trade and Industry Tel.: +81 (0)3-3501-1662

For information on other incentives, etc., see JETRO’s website. 26 → https://www.jetro.go.jp/en/invest/incentive_programs.html 10. Support for Foreign Investment in Kansai INVEST KANSAI 10-4. Examples of Incentives Offered by Local Governments

(As of April 2018) Fukui Tax cuts

Reduction in or exemption from business tax, real estate acquisition tax and fixed assets tax in applicable areas for up to 3 years

Financing program Financing to promote establishment of corporate sites Low-interest loans for businesses to encourage companies to locate in the prefecture and hire local residents (Rate: 1.2% a year (fixed rate), limit: ¥500 million (¥1 billion if specially approved), duration: 15 years max.)

Subsidy program Business start-up subsidy (financial aid for facilities) Subsidies for equipment acquired for high-tech ,health-and-longevity or food businesses (maximum of ¥3 billion). Subsidies for facility acquisition and new hiring for HQ function (including test research) (maximum of ¥600 million) Business start-up subsidy (financial aid for business activity costs) Subsidies for the business expenses of high-tech or health-and-longevity businesses (Maximum of ¥100 million per year for 3 years) Business start-up subsidies (financial aid for R&D) Subsidies for the research and development expenses of businesses that plan to establish or expand research facilities in applicable areas (Subsidize 50% of total cost; maximum of ¥100 million/year and an overall total of ¥500 million)

(Note) For more details of local governments’ support systems, visit the website of the Kansai Bureau of Economy, Trade and Industry or JETRO. Kansai Bureau of Economy, Trade and Industry: http://www.kansai.meti.go.jp/3-1toukou/invest_in_kansai/e_various_incentives.html JETRO “Regional Information”: https://www.jetro.go.jp/en/invest/region/ 27 10. Support for Foreign Investment in Kansai INVEST KANSAI 10-4. Examples of Incentives Offered by Local Governments

(As of April 2018) Shiga Subsidy programs “Made in Shiga” Subsidy for Business Siting Applicable to HQs, R&D facilities and mother factories sited in Shiga in growing industries* *Growing industries: Environmental, medical, next-generation vehicle, aerospace, industrial robot, leading-edge electronic component and material

Major features Limit: 1 billion yen for large-scale investments - Good access to 100 million yen for the other projects major cities in Kansai Up to 5% of the amount invested to acquire fixed assets - Low land values - Many production plants in a variety of Subsidy for Business Siting in the Ambient Area of a Nuclear Power Plant industries (Only applicable to specific areas and projects) Assistance with electric power bills paid under the contract for the supply of power to new and added business facilities Tax cuts Reduction in business tax for 3 years and exemption from real estate acquisition tax (Only applicable to specific areas and projects)

(Note) For more details of local governments’ support systems, visit the website of the Kansai Bureau of Economy, Trade and Industry or JETRO. Kansai Bureau of Economy, Trade and Industry: http://www.kansai.meti.go.jp/3-1toukou/invest_in_kansai/e_various_incentives.html JETRO “Regional Information”: https://www.jetro.go.jp/en/invest/region/ 28 10. Support for Foreign Investment in Kansai INVEST KANSAI 10-4. Examples of Incentives Offered by Local Governments

(As of April 2018) Kyoto Tax cuts Financing program Low-interest loans for necessary funds for building or Reducing real estate acquisition expanding a factory or the like applicable to the Special tax by 50% at maximum, if a Business Subsidy under Kyoto Industrial Site Strategy 21 factory or the like is built or (Annual interest rate (fixed during the first 10 years): 1.7%; expanded in an integration special rate: 1.2%; upper limit: ¥ 2 billion; duration: up to promotion area for manufacturing 20 years for equipment fund, and up to 7 years for and other industries operating fund) Subsidy program

Special Business Subsidies under Kyoto Industrial Site Strategy 21 Subsidizing companies that build or expand a factory or the like in Kyoto Prefecture, to compensate their labor costs for regular employees within the prefecture and their investments in fixed assets Subsidies for supporting businesses located near nuclear power plants, etc. Kyoto City Subsidizing companies that build or expand a factory or the like in applicable areas, to compensate their electricity charges resulting from their electricity contracts.

Subsidies for promoting the establishment of corporate facilities in Kyoto City: Subsidizing companies that build or expand their head offices, factories, research institutes, and R&D centers in the city, to compensate the fixed asset tax and city planning tax on the newly acquired assets (for five years for SMEs and for two years for large enterprises with a one-year extension for all enterprises located in specified areas, such as Rakunan ), and to cover archaeological excavation costs and costs for establishing rainwater runoff control facilities in specified exclusive industrial districts Subsidies for developing Kyoto-type top global niche companies: Subsidizing target companies, including companies ranked “A” by the Kyoto City venture business committee, which build or expand business locations, to compensate the fixed asset tax and city planning tax for five years, and to cover archaeological excavation costs and costs for establishing rainwater runoff control facilities in specified exclusive industrial districts

Kyoto City landowner incentives for promoting the establishment of business facilities: Providing owners of land in specified industrial districts with incentives when they sell their land to businesses intending to use the land to establish business facilities

(Note) For more details of local governments’ support systems, visit the website of the Kansai Bureau of Economy, Trade and Industry or JETRO. Kansai Bureau of Economy, Trade and Industry: http://www.kansai.meti.go.jp/3-1toukou/invest_in_kansai/e_various_incentives.html JETRO “Regional Information”: https://www.jetro.go.jp/en/invest/region/ 29 10. Support for Foreign Investment in Kansai INVEST KANSAI 10-4. Examples of Incentives Offered by Local Governments

In cooperation (As of April 2018) with Osaka City Tax cuts City tax preferential treatment under City Regulations Osaka Growth zone tax system (prefectural tax) on the Promotion of Investment in Manufacturing Reduction in or exemption from the prefectural A 25% to 50% reduction (for 5 years) in fixed asset tax, applicable to the companies that build, expand or tax, applicable to the companies expanding into rebuild their factories in industrially suitable areas in special zones in the prefecture, gaining approval the city of their business plans and doing business in the field of new energy or life science Financing programs Sakai City Industrial Promotion Tax System Loans based on the proposals made by (reduction in real estate acquisition tax) financial institutions A 50% reduction (up to 200 M yen) of the real Loans given to companies so that they estate acquisition tax applied to the acquisition can establish (build) factories and research of land and buildings (factories and research facilities in the prefecture facilities) in an industrial promotion area (Requirements vary with financial institutions.) Subsidy programs Osaka City Subsidy Program for Establishing Innovation Subsidy for Promotion of Foreign-Affiliated Company Penetration Base in Osaka City Applicable to foreign-affiliated companies setting up an HQ in Osaka Pref. Applicable to the costs of acquiring or renting buildings Building acquired: 5% of the acquisition costs of buildings and in the city that serve as bases where new products are equipment, up to 100 M yen planned and developed through open innovation, or Building rented: One-third of the rent (for 24 months), up to 60 M yen venture companies are helped with their projects Base owned: 10% of the acquisition costs of the buildings Osaka Prefecture Investment Promotion Subsidy and auxiliary facilities, up to 300 M yen Applicable to: Base rented: A half of the rent (for 2 years), up to 60 M yen (1) Investments in the projects of building, expanding or rebuilding factories and R&D facilities in the applicable area (up to 30 M yen) (2) Payment of corporate enterprise tax by the beneficiaries of subsidy (1) above (up to 20 M yen) Sakai City Subsidy for Promotion of Company Growth Applicable to investments made to set up an HQ or R&D facilities or venture into the fields that the city encourages to grow (up to 150 M yen) (1) 5% to 15% of the investment amount (2) 0.2 M yen per new hire for 3 years Sakai City (Note) For more details of local governments’ support systems, visit the website of the Kansai Bureau of Economy, Trade and Industry or JETRO. Kansai Bureau of Economy, Trade and Industry: http://www.kansai.meti.go.jp/3-1toukou/invest_in_kansai/e_various_incentives.html JETRO “Regional Information”: https://www.jetro.go.jp/en/invest/region/ 30 10. Support for Foreign Investment in Kansai INVEST KANSAI 10-4. Examples of Incentives Offered by Local Governments

(As of April 2018) Hyogo Tax cuts The following reduction applicable to HQ relocation The following reductions in fixed asset tax from one of the three major cities in Japan or from and business facility tax overseas or business establishments in specific areas - Strategic industries: 9/10 for 5 years - A 1/3 reduction in corporate enterprise tax for 5 years (5 more years for large-scale businesses) - A 50% reduction in real estate acquisition tax (up to (no limit of amount) 200 M yen) - Other industries: 2/3 Kobe City Subsidy programs Kobe City

Subsidy for the Promotion of Industrial Siting Financial assistance for HQ relocation to Kobe from outside (based on employment) (but not from any of the 23 wards of Tokyo*) including: Applicable to new regular employment of locals - Up to 4% of building acquisition costs (0.3 M yen per hire, up to 300 M yen) - Employment assistance (0.2 M yen per hire) Subsidy for Establishment Support * The national government offers preferential treatment for relocation from any of the 23 wards of Tokyo. Financial assistance for market research and corporate registration (Up to 50%, up to 1 M yen for market research and 0.2 M yen for corporate registration) Subsidy for start-up Partial coverage of office opening and operation costs Financial assistance for HQ relocation from one to encourage business start-up of the three major cities in Japan or from overseas (Covering 50% of office rents, telecommunication fees and E.g., up to 5% of capital investment building refurbishment costs) In cooperation with Kobe City Subsidy for office rent Foreign companies are subsidized with 50% of their office rents for 3 years (subsidy amount of up to 2 M yen per year) Note: In applicable areas in Kobe, the upper limit increases to 11 M yen because of an additional subsidy given by the city In cooperation with the (Note) For more details of local governments’ support systems, visit the website of the Kansai Bureau of cities of Kobe and Himeji Economy, Trade and Industry or JETRO. Kansai Bureau of Economy, Trade and Industry: http://www.kansai.meti.go.jp/3-1toukou/invest_in_kansai/e_various_incentives.html JETRO “Regional Information”: https://www.jetro.go.jp/en/invest/region/ 31 10. Support for Foreign Investment in Kansai INVEST KANSAI 10-4. Examples of Incentives Offered by Local Governments

(As of April 2018) Nara Tax cuts

Exemption of real estate acquisition tax Reduction of business tax ( 75% for 3 years)

Subsidy program

Subsidy to promote strengthening of local sites Granted to companies investing in the relocation of HQs from the outside of the prefecture or in the expansion of HQs within the prefecture (maximum of ¥100 million)

Business start-up subsidy Subsidies for businesses establishing plants or research institutes in the prefecture (up to ¥2 billion for large-scale lots, ¥1 billion for medium sized lots). Subsidies for promoting establishment of telecommunications businesses Subsidizing capital investment and rent for the establishment of telecommunications businesses. Subsidies to support securing human resources Subsidies for recruitment advertisements and human resources introductions by businesses located in the prefecture.

(Note) For more details of local governments’ support systems, visit the website of the Kansai Bureau of Economy, Trade and Industry or JETRO. Kansai Bureau of Economy, Trade and Industry: http://www.kansai.meti.go.jp/3-1toukou/invest_in_kansai/e_various_incentives.html JETRO “Regional Information”: https://www.jetro.go.jp/en/invest/region/ 32 10. Support for Foreign Investment in Kansai INVEST KANSAI 10-4. Examples of Incentives Offered by Local Governments

(As of April 2018) Wakayama Tax cuts Financing program Reduction or exemption of Low-interest loans for businesses business tax, real estate located in the prefecture employing acquisition tax, fixed asset local residents.(Rate: long-term prime tax, etc. on businesses in rate × 3/4%; limit: ¥200 million; applicable areas for 3 years. duration: Up to 10 years) Subsidy program

Granted to businesses constructing applicable facilities and employing local people in the prefecture (up to ¥1 billion in the case of employing 100 or more people).

Up to 15% of the fixed assets of applicable businesses employing local people in the prefecture (up to ¥9 billion in the case of employing 500 or more people).

Granted to businesses building accommodations that meet specific requirements in the prefecture and employing residents of the prefecture (up to ¥300 million)

(Note) For more details of local governments’ support systems, visit the website of the Kansai Bureau of Economy, Trade and Industry or JETRO. Kansai Bureau of Economy, Trade and Industry: http://www.kansai.meti.go.jp/3-1toukou/invest_in_kansai/e_various_incentives.html JETRO “Regional Information”: https://www.jetro.go.jp/en/invest/region/ 33 INVEST KANSAI (Reference) Tourism-Related Websites of Kansai KANSAI Tourism Union of Kansai Governments —Welcome to KANSAI, Japan— Kansai Sightseeing Web http://www.kouiki-kansai.jp/tourist_info/en/ http://kansai.gr.jp FUKUI Fukui Prefectural Tourism Federation http://www.fuku-e.com/lang/english/

SHIGA Biwako Visitors Bureau https://en.biwako-visitors.jp/

KYOTO Kyoto Tourism Federation http://www.kyototourism.org/en/ Kyoto City Tourism Association https://kyoto.travel/en “KANSAI Tourism” is a web portal run by the Kansai Tourism Bureau. It is a source of information on sightseeing in Kansai. OSAKA Osaka Convention & Tourism Bureau The multi-language portal provides a wide variety of https://osaka-info.jp/en/page/octb-top information, covering 10 prefectures (including Fukui, Mie, Sakai Tourism & Convention Bureau Tottori and Tokushima) and 4 ordinance-designated cities in Kansai. http://www.sakai-tcb.or.jp/english/

The “Things to Do” page divides the attractions of Kansai into HYOGO Hyogo Tourism Association six categories: food, cultural heritage, four seasons, art & http://www.travelhyogo.org.e.aas.hp.transer.com/ culture, events, and sports. The “Route” page lists “THE Kobe Tourism Bureau FLOWER OF JAPAN, KANSAI” tour courses full of attractive http://plus.feel-kobe.jp/ tourist spots in Kansai. The website has links to the Facebook pages of local governments, a page for downloading NARA Nara Visitors Bureau sightseeing brochures, and a transfer guide page for quick learning of access to tourist spots. This must-visit website is http://www.nara-kankou.or.jp/convention/e/ filled with information to enjoy Kansai! WAKAYAMA Wakayama Tourism Federation Kansai Tourism Bureau’s official Instagram account https://en.visitwakayama.jp/

Your photos will appear on its Instagram page. Post your favorite spots in Kansai with #truekansai. 34 INVEST KANSAI [Contact information about this brochure] International Investment Promotion Division, Kansai Bureau of the Ministry of Economy, Trade and Industry Address: 1-5-44 Otemae, Chuo-ku, Osaka, 540-8535 TEL: +81-6-6966-6033 (domestic call: 06-6966-6033) FAX: +81-6-6966-6087 (domestic call: 06-6966-6087) E-mail: [email protected] URL: http://www.kansai.meti.go.jp/english/index.html

[Contact information about foreign investment in Kansai]

JETRO Invest Japan Business JETRO Invest Japan Business JETRO Fukui Support Center, Osaka Support Center, Kobe( JETRO Address: Fukui CCI Bldg.6F, 2-8-1, Nishikida, Fukui, Fukui (JETRO IBSC Osaka) IBSC Kobe) 918-8004 Address: Osaka-Kokusai Bldg. 29F, 2-3-13, Address:Kobe C.I.T. Center Bldg.4F, TEL: +81-776-33-1661 Azuchi-machi, Chuo-ku, Osaka, 5-1-14 Hamabedori, Chuo-ku, (domestic call: 0776-33-1661) Osaka 541-0052 Kobe, Hyogo 651-0083 FAX: +81-776-33-7110 TEL: +81-6-4705-8660 TEL: +81-78-231-3081 (domestic call: 0776-33-7110) (domestic call: 06-4705-8660) (domestic call: 078-231-3081) URL: https://www.jetro.go.jp/fukui FAX: +81-6-4705-8650 FAX: +81-78-232-3439 (domestic call: 06-4705-8650) (domestic call: 078-232-3439) URL: https://www.jetro.go.jp/osaka URL: https://www.jetro.go.jp/kobe

JETRO Shiga JETRO Kyoto JETRO Wakayama Address: Hikone CCI 1F, 3-8 Chuo-cho, Address: 2F, Building #2, KRP, 134 Address: Wakayama Prefectural Government , Hikone, Shiga 522-0063 Chudoji Minamicho, Shimogyo-ku, 1-1 Komatsubara-dori, Wakayama, TEL: +81-749-21-2450 Kyoto,Kyoto 600-8813 Wakayama 640-8269 (domestic call: 0749-21-2450) TEL: +81-75-325-5703 TEL: +81-73-425-7300 FAX: +81-749-27-3750 (domestic call: 075-325-5703) (domestic call: 073-425-7300) (domestic call: 0749-27-3750) FAX: +81-75-325-5706 FAX: +81-73-425-7310 URL: https://www.jetro.go.jp/shiga (domestic call: 075-325-5706) (domestic call: 073-425-7310) URL: https://www.jetro.go.jp/kyoto URL: https://www.jetro.go.jp/wakayama

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