Japan officially entered a recession last year after its economy shrank in the second and third quarters. Its Nikkei stock index has dropped 45% since its June peak. GDP is expected to contract in 2009 for the first time since 2001. Business confidence is at its lowest in 34 years. The grim news hit Japan's 40 Richest, who are worth a combined $69.5 billion, down from $89.9 billion in May, when we published the 2008 rankings. Even the soaring yen, which recently hit a 13-year high against the U.S. dollar, couldn't pull up these dollar-based fortunes. Twenty-eight of the 40 richest lost money, including 9 of the top 10.
Still, there were outperformers--most notably Tadashi Yanai, who is Japan's richest person for the first time; worth $1.4 billion more than last year, he is the fifth person to be ranked No. 1 in as many years. Three others added to their fortunes including Masahiro Miki, who runs shoe retailer ABC Mart; Chizuko and Michio Matsui, whose online firm, Matsui Securities, is doing well in a volatile environment; and the Kinoshita brothers, whose struggling lender became a subsidiary of Mitsubishi UFJ Financial. The year's richest newcomer is Internet entrepreneur Yoshikazu Tanaka. Also making debuts are the Tada brothers, who share a stake in discount drug chain Sundrug, and Hirokazu Sugiura, founder of Sugi Pharmacy. Two other retail tycoons, Akio Nitori and Muneaki Masuda, return to the ranks after a two-year (or more) absence.
Six from the 2008 rankings missed the cutoff, despite the fact that it was $235 million lower than last year. Yoshitaka Fukuda dropped $1.5 billion to $250 million as the stock of his consumer finance company, Aiful, crashed. Ryuji Arai, whose Bic Camera restated earnings and may be fined, lost two-thirds of his fortune.
Unlike our billionaires rankings, which highly individual fortunes, Japan's Top 40 includes numerous family fortunes. the list was compiled using shareholder and financial information obtained from the families and individuals themselves, stock exchanges and analysts. Stock prices and exchange rates were locked in on Feb. 6. Private companies were valued based on comparison with prevailing price-to-earnings or other financial ratios.
1 Tadashi Yanai
$6.1 billion, RETAIL
60. Married, 2 children
His discount clothing chain Fast Retailing has thrived amid the downturn. (See story, p. 34.)
2 Kunio Busujima
$5.2 billion, Gaming
83. Married, 4 children
Founder of Sankyo, pachinko gambling-machine maker, stepped down as chairman in 2008; remains a director and senior adviser. Son Hideyuki is chairman and chief executive. Outfit has turned to comic book and movie characters like Star Wars' Darth Vader to help bolster sales. Nongamblers know company as sponsor of Sankyo Ladies Open golf tournament.
3 Hiroshi Yamauchi
$4.5 billion, Game consoles
81. Married, 2 children
Turned playing card company Nintendo into world's most successful videogame console maker. Sales of the Nintendo Wii machine jumped 47% to 25 million units, outstripping
4 Akira Mori
$4.2 billion, Real estate
72. Married, 3 children
His Mori Trust owns office buildings, apartment blocks and hotels in high-rent districts of Tokyo. Recent projects: a 37-story office building outside Tokyo Station with Shangri-La Hotel; a tower in Sendai to be northern Japan's tallest when complete in 2010.
5 Masayoshi Son
$3.9 billion, Internet
51. Married, 2 children
Founder of Internet and telecom company SoftBank bet heavily on mobile phones by snapping up Japan's
6 Eitaro Itoyama
$3.7 billion, Golf courses
66. Married, 2 children
Golf course magnate and blogging shareholder activist forced resignation of Japan Airlines' president 3 years ago. Sold shares in airline in favor of stake in broadcaster TV Tokyo, latest target of his online browbeating. Claims to have sailed his 150-foot yacht around the world 3 times.
7 Hiroshi Mikitani
$3.6 billion, Internet
44. Married, 1 child
Internet entrepreneur runs Japan's leading online shopping mall Rakuten. Battling Amazon by expanding items available for next-day deliveries. Plans to set up shop in 27 countries over next 4 years, beginning in Taiwan. Broadcasting play thwarted last year when Tokyo Broadcasting System, in which he has 20% stake, reorganized itself under a holding company.
8 Nobutada Saji
$3.5 billion, Beverages
63. Married
Suntory, drinks giant established by his grandfather, overtook its nearest competitor, Sapporo, in 2008 sales. In October purchased New Zealand soft-drink maker Frucor for a reported $770 million. Arts patron runs major Tokyo gallery. Avid swimmer also operates chain of gyms.
9 Hiroko Takei
$2.8 billion, Finance
67. Widowed, 3 children
Widow of Yasuo Takei, founder of consumer finance company Takefuji. Son Taketeru is a managing director of firm. Family wisely sold bulk of shares a couple of years ago but still holds stake in lender.
10 Takemitsu Takizaki
$2.4 billion, Sensors
63. Married
Founder of Keyence, leading maker of sensors. Company pays engineers more than $100,000 on average to attract industry's best talent, but personal items such as photographs are banned from employees' work spaces.
11 Masatoshi Ito
$2.3 billion, Retail
84. Married, 3 children
Built Seven & I Holdings into Japan's leading retailer, with department stores, supermarkets and 12,000 7-Eleven stores. Company opened banking unit and is expanding overseas to counter weak consumer spending at home. Honorary Chairman Ito recently gave away 10% of his shares in company to longtime employees.
12 Masahiro Miki
$2.2 billion, Retail
53. Married
Founder of discount shoe store chain ABC Mart. Accelerating store openings to capture penny-pinching consumers. Sales in first half were up 13%; profits also up on strong yen.
13 Kinoshita brothers
$1.9 billion, Finance
Three brothers inherited father's consumer loan outfit Acom. Eldest, Kyosuke, chairman; Shigeyoshi, president (above). Hit by financial troubles, the lender became subsidiary of financial giant Mitsubishi UFJ Financial in December. Remains listed company; stock up in last 12 months.
14 Katsumi Tada
$1.7 billion, Construction
63. Married
Founder of Daito Trust Construction. Sale to private investors, including bidder billionaire Akira Mori (No. 4) canceled after financial crisis locked up credit markets. Company stock price up after issuing $2 bonus dividend last year.
15 Kanbei Kokubu
$1.6 billion, Food Distribution
69. Married, 2 children
Latest boss of food and liquor wholesaler founded almost 300 years ago when shoguns ruled Japan. Group faced scandal this year after it bought rice from wholesaler Mikasa Foods, which was caught selling tainted goods.
16 Ryoichi Jinnai
$1.5 billion, Finance
82. Married, 1 child
Retired 8 years ago from Japan's No. 3 consumer lender, Promise, to grow mangoes, bananas. Now run by son Hiroki, whose recent acquisitions and alliances have led company to post higher profits; also reported decrease in loan losses thanks to tighter screening of loan applicants.
17 Soichiro Fukutake
$1.4 billion, Education
63. Married
Owns $3.7 billion (sales) Benesse, Japan's largest correspondence school, which runs globally recognized Berlitz language schools as well as providing elderly services and mail order shopping. Sales for first 9 months of fiscal year ending in March were up 9%. Company sponsors art museum on picturesque Naoshima Island.
18 Shigenobu Nagamori
$1.2 billion, Micromotors
64. Married
Founder of
19 Minoru Mori
$1.1 billion, Real Estate
74. Married, 1 child
Older brother of Akira Mori. Known for grandiose projects such as the Shanghai World Financial Center, China's tallest building, which opened in 2008. Last year sold most of stake in flagship Roppongi Hills in Tokyo to help fund new development, including a 47-story tower in Japan's capital.
20 Han Chang-Woo
$1 billion, Gaming
78. Married, 6 children
Korean immigrant celebrated 50th anniversary of the founding of his privately held Maruhan, Japan's largest operator of pachinko parlors, last June. Had party for 2,000 people that featured a performance by the Tokyo Philharmonic Orchestra. Also opened hotel casino in Macau and commercial bank in Cambodia last year.
21 Chizuko & Michio Matsui
$950 million, Finance
54; 56. Married, 3 children
Michio turned small regional brokerage Matsui Securities, founded by wife Chizuko's grandfather in 1918, into online securities trader. Began Nikkei 225 futures trading in June, but suspended operations after
22 Kazuo Okada
$900 million, Gaming
66. Married, 2 children
Founded pachinko and slots company Aruze, which recently acquired U.S. gaming-machine content supplier, True Blue Gaming. Expects net income to slump 61% this business year with weak slot machine demand at home. Expanding in casinos in Philippines; owns part of U.S. billionaire Steve Wynn's Macau business.
23 Tetsuro Funai
$880 million, Electronics
82. Married
Founder of Funai Electric, maker of DVD players, televisions, which is facing stiff competition from Chinese and other rivals. Retired as chief executive in June 2008; will continue as executive chairman. Apologized to shareholders in latest annual report for revenue decline.
24 Yoshikazu Tanaka
$850 million, Internet
32. Single
Founded Japan's second-biggest social networking site, Gree, in 2004. With 8 million users it trails behind rival rich lister Kenji Kasahara's Mixi.
25 Yokyu Kanazawa
$800 million, Gaming
Married, 2 children
With 2 brothers owns privately held maker of pachinko and slot machines Sanyo Bussan, known for bikini-clad animated figure featured on its machines. More recent products have featured both Japanese and Western cartoon characters.
26 Yasuhiro Fukushima
$770 million, Software
61. Married
Videogame software firm Square Enix, best known for its Final Fantasy and Dragon Quest series, is source of Fukushima's wealth. He founded Enix, which merged with Square in 2003; remains honorary chairman of the combined entity.
27 Akio Nitori
$760 million, Retail
65. Married
Founded discount home furnishing retailer Nitori. Makes furniture in low-cost factories overseas, then ships to Japan; initial costs for its in-store products about one-third of its competitors'. A
28 Nobutoshi Shimamura
$750 million, Retail
82. Married
Retired founder of discount clothes retailer Shimamura. Son Hiroyuki is an auditor at the company, which has expanded into children's clothes, shoes and furnishings. Though sales at existing stores are down, plans remain to open 44 new stores this year.
29 Hajime Satomi
$740 million, Gaming
67. Married
Boss of
30 Shoji Uehara
$730 million, Drugs
81. Married, 2 children
Resigned last year as chairman of Taisho Pharmaceutical, known for its Lipovitan energy drink and Riup baldness treatment, but business is still a family affair. Son-in-law Akira is president; grandsons Shigeru and Ken executive directors. Company is seeking alliances to broaden its product range as profits slip. Working with GlaxoSmithkline to market an antiobesity drug in Japan.
31 Kazuo Inamori
$700 million, Manufacturing
77. Married, 3 children
Chairman emeritus since 2005 of Kyocera, Japan's leading maker of ceramic components. Also manufactures cell phones and solar panels. Though demand for solar panels remains strong, halved net income forecast to $622 million. Inamori is an ordained Buddhist monk.
32 Tadahiro Yoshida
$620 million, Zippers
62. Married
Runs YKK, world's leading maker of zippers and a building materials supplier. Last year marked its 75th anniversary. Construction unit sales in Japan hurt by tighter regulations and a weak economy. Will close as many as 10 factories to trim costs.
33 Tada brothers
$610 million, Drug Retail
Naoki Tada, along with brother Takashi, inherited stake in discount drugstore chain Sundrug. Naoki serves on the board. The brothers run a real estate development company, Forest, which builds small shopping centers, operates variety stores and sells sundry goods such as trash bags, foil, hangers and laundry nets to chain stores.
34 Yasumitsu Shigeta
$600 million, Telecom
44. Married, 3 children
Runs Hikari Tsushin, cell phone retailer, office equipment supplier and telecom services provider. Stock has taken a beating as profits slipped. Three times a month employees volunteer to clean nearby subway station.
35 Hirokazu Sugiura
$580 million, Drug Retail
58. Married, 2 children
Founder of publicly traded Sugi Pharmacy with more than 600 drugstores centered on Aichi Prefecture in central Japan. Sales expanding rapidly as it opens new outlets, 100 new stores planned this year. Sugiura and other executives took temporary pay cut in 2008 after head accountant embezzled $5 million.
36 Minoru & Yuji Otsuka
$550 million, Software
86; 55.
Yuji, a former banker, has run Otsuka, a supplier of office copy machines and software, since his father, Minoru, stepped down in 2001. Net income this year expected to slip 36% as clients trim spending.
37 Shoichiro Toyoda
$510 million, Automotive
84. Married, 2 children
Remains honorary chairman of
38 Toichi Takenaka
$500 million, Construction
66. Married, 3 children
Manages oldest construction firm in Japan. Got its start 400 years ago building temples and shrines. Now builds dams and housing, and digs tunnels and harbors. Hurt by dropping real estate prices.
39 Muneaki Masuda
$490 million, retail
58. Married, 2 children
Founded Tsutaya, one of Japan's leading movie-, music- and game-rental chains. Runs Culture Convenience Club, which markets service and products to Tsutaya members. Other businesses include a database marketer and Esquire Magazine Japan.
40 Kenji Kasahara
$480 million, Internet
33. Single
Creator of Mixi, Japan's most popular social networking site. Most visitors access site via mobile phones. To attract more users, lowering age limit and allowing log-on without an invitation.
Additional reporting by Tim Kelly, Justin Doebele & Kiyoe Minami
