Japan plunged into political uncertainty on Friday after the Komeito Party withdrew from its decades-long coalition with the ruling Liberal Democratic Party (LDP), throwing the country’s leadership succession into disarray.
The dramatic move comes less than a week after Sanae Takaichi was elected as LDP president, positioning her to become Japan’s first female prime minister.
However, with Komeito pulling out, her confirmation by parliament is now in jeopardy.
Komeito’s exit ends a political partnership that has anchored Japanese politics for nearly 25 years.
The announcement sent shockwaves through financial markets, with the yen sliding against the dollar and the Nikkei index closing 1% lower.
“We’ve decided to take a step back and dissolve our alliance with the LDP for now,” Komeito leader Tetsuo Saito told reporters.
“There’s been a lack of transparency and cooperation, particularly around critical issues like the recent slush fund scandal. We cannot, in good faith, support Ms. Takaichi’s nomination for prime minister under these circumstances.”
One of Komeito’s main grievances was Takaichi’s unsatisfactory response to the LDP’s slush fund scandal, which has sparked public outrage and contributed to the coalition’s weakened position in parliament.
Komeito has also reportedly grown uneasy with Takaichi’s conservative stance, especially her past visits to the controversial Yasukuni Shrine, which honors Japan’s war dead, including convicted war criminals.
These visits have historically angered China, South Korea, and even drawn concern from Washington.
Although some media outlets suggest Takaichi may skip the shrine visit during the upcoming autumn festival (October 17–19), it’s unclear whether this will ease tensions.
Takaichi, 64, a staunch conservative often compared to Margaret Thatcher, had recently won a runoff election against the younger, more progressive Shinjiro Koizumi, 44. Her victory was seen as a win for the party’s traditionalist wing.
She was expected to succeed Shigeru Ishiba, who stepped down after his government lost its majority amid public frustration over rising inflation and the ongoing LDP corruption scandal.
Despite the fallout, Komeito says it will continue to support pending budget proposals and previously agreed legislation, signaling that some level of cooperation may remain.
