The collapse of the Yakuza
The Yakuza have become closely interwoven with Japanese society; but changing laws are reshaping the criminal world
Yakuza is a term that refers to the various gangs, and members of those gangs, that have been tied to almost 400 years of Japanese history. Yakuza representation in media show violent lowlifes who commit heinous acts and should be eradicated from Japanese society.
The modern day Yakuza are far from this. An amalgamation of businessmen, ethnic minorities and underworld figures, the roots of this complex society can be traced back as far as the Tokugawa Shogunate (between 1603 and 1868 C.E).
Part I: Once upon a crime
Humble beginnings
The early Yakuza are believed to have stemmed from two separate groups of outcasts. The Tekia, travelling salesmen who wandered between villages, belonged to the burakumin social class, referred to by many as “non-humans”. The other group, Bakuto, were gamblers, hustling in a time where gambling was strictly forbidden (it remains illegal in Japan even to this day). They often adorned colourful tattoos and were involved in money lending and other illegal activities at the time. This is where many of the hair styles and body tattoos we see today originate .
Throughout history, and more so in recent years, the island of Kyushu has seen large communities of yakuza members, including many renowned bosses in the Yamaguchi Gumi (family). Isokichi Yoshida (1867–1936) was a member from the Kitakyushu area of Japan and was considered to hold great influence over society for his dual role as Yakuza boss and political figure.
As Japan began increasing its industrial might in the 20th Century, the Yakuza began expanding their organisational reach, recruiting members in construction, dockwork and, eventually, office workers and university graduates. The Yakuza often attracted disenfranchised youth or young men, who lacked a sense of belonging in society or felt a lack of connection with their biological families.
“We help the weak, and fight the strong.” — Yakuza Ethos
Post war era
Yakuza groups began building political ties in the time before the war, and, following Japan’s losses in World War II, further capitalised on these relationships. They began to cooperate with the authorities in return for services and favours and to ease the harassment from the authorities.
American troops that occupied Japan after World War II saw the threat of the Yakuza, and began influencing Yakuza groups with goods and supplies in an attempt to destabilise many of the larger organisations.
The losses suffered during the war: the heavy bombing of major cities, the deaths and dismemberment of many of the adult male population, and the occupation by American troops led to the establishment of black markets throughout Japan. These presented as small stalls which popped up all throughout cities and, operating in a legally grey area, formed the basis of Japan’s micro economy as the country struggled to regain its former glory. These black markets were a hotbed of organised crime, with many Yakuza establishing themselves as loan sharks and security for their groups patch of turf. Eventually the financial success of these groups allowed them to expand further into infrastructure markets, with lucrative businesses involved in post war reconstruction such as the: construction of roads, sewers, apartments and factories. By the late 1950 to early 1960s, many of the larger Yakuza families established themselves as key players in the modern Japanese economy.
Leader of the pack
The Yamaguchi Gumi
The Yamaguchi Gumi is considered the largest criminal organisation in Japan. Founded in 1915 in Hyogo prefecture, western Japan, it grew significantly between the 1950’s and ’70s and recorded 8,200 active members in 2020. The Yamaguchi Gumi has its headquarters in Kobe, but it operates all across Japan and has overseas operations.
Kenichi Shinoda (篠田 建市) also known as Shinobu Tsukasa (司 忍), is a Japanese Yakuza and the sixth and current Kumicho (chairman) of the Yamaguchi Gumi.
For an in depth look into the operations of the Yamaguchi Gumi, I would highly recommend this 5 part documentary on the organisation’s 5th regime (1979–2005).
The Yakuza have become closely interwoven with modern Japanese society. From businesses to education structures, these organisations are more involved in Japan than many realize. These groups have been seen doing deals with politicians and government officials, showing a clear position of influence amongst Japan’s elite.
Part II: A beast in the shadows
Yakuza development and prosperity in the late 19th Century
There is a commonly held belief that the Yakuza are violent criminals who threaten shop owners and terrorise citizens in the streets. The truth is that these organisations are much more subtle in operation.
The culture and hierarchy of a Yakuza family is similar to that of a common family in traditional Japan. The leader of the family is called Oyabun, meaning Father, and beneath him are his Wakashu (children) and Kyodai (brothers). These people are not the Oyabun’s real children or brothers, but instead represent ranks within the clan. An Oyabun’s ruling is absolute, and he is obeyed completely by the members of the clan. In return he offers them protection. The relationship resembles the senpai kohai (big brother, little brother) structure where fierce loyalty is given by the little brother. Aside from the Oyabun, almost all members are both leaders and subordinates, where every senior member has a group of junior members who report to them for various roles.
“A child cannot choose their parents. But we (Yakuza) choose our parents, and we become their children. There have been happy times, tough times, painful times, and exciting times. That’s how life goes. I feel the danger of losing my life. But that is the thing I have to do. For us to follow what we believe in, we have to accept that danger. However, to follow our Oyabun is our way.” — Active Yakuza member
There are 22 organised crime syndicates in today’s Japan. The largest are: Yamaguchi Gumi, Inagawa Kai, Matsuba Kai, and Sumiyoshi Kai. There are smaller families who also function within these larger organisations, and typically fall within the lower levels of the organisations hierarchy. Lower ranking members typically live in the headquarters and are tasked with cleaning and cooking duties for the senior members. As members progress through the ranks, and maintain loyalty, they are given more responsibility.
Unlike criminal organisations in other countries, the Yakuza names and crests appear in plain sight in directories of the buildings that they occupy, and their members are active and visible participants in the life of their host communities.
Punishment
Yubitsume is a ritualistic self amputation of the first bone in the hand, practiced by the Yakuza. The practice of self mutilation is done as a sign of apology by one of the members, for making a mistake that is deemed punishable by higher ranker members. This mistake usually involved violating the code of the Yakuza.
Yubitsume originated in the gambling clans, Bakuto, as a form of punishment for serious offences that did not warrant execution or expulsion. The practice motivated gamblers and members to pay their debts in time, or suffer a worse debt instead.
The ritual is done is various ways. A common method involves placing a cloth on a flat surface, followed by the offenders left hand. A small sword (tanto) or sharp knife is used to sever the top portion of the finger. More crude methods have been seen such as placing a chisel in the joint and belting it with a hammer or other blunt object.
The act of Yubitsume is rarely performed in recent years, likely as a way of maintaining secrecy of Yakuza activities with the strengthening laws. The main forms of punishment tend to be financial or complete expulsion from the organisation.
Humanitarian aid
The Yakuza have gained favorable attention through their work in relief efforts in the wake of natural disasters. In the spring of 2011, Japan was devastated by one of the most brutal tsunamis and earthquakes in the country’s history. These devastating events crippled the people of the Tōhoku region whose homes were torn to shreds, neighborhoods shattered, and everything they knew lost.
In the wake of the devastation, a fleet of more than 70 trucks poured into the towns and cities of Tōhoku, containing food and supplies for the residents. This initial aid group didn’t come from the government. They came from a group not often associated with good deeds. These were members of the Yakuza, and this wasn’t the first time they had helped fellow Japanese in crisis. After 1995’s Kobe earthquake, the Yakuza had also been the first on the scene. And not long after their 2011 Tōhoku relief effort started winding down, the Yakuza sent men into the deadly Fukushima nuclear reactor to help alleviate the situation resulting from the meltdown that had been caused by the tsunami as well.
The Yakuza live by what is referred to as the “Ninkyoi Code”. It is a guiding principle that every Yakuza claims to live by in that one cannot allow others, particularly those who are deemed weaker, to suffer. This is spoken about in depth by Japanese writer, Manabu Miyazaki. Miyazaki is the son of a Yakuza boss in Kyoto who has spent much of his adult life involved with the criminal world of Japan, describing many of the members as “reckless but warmhearted”. The driving factor for many members to first join criminal organisations is poverty and discrimination. They have experienced being disenfranchised and see themselves as social protectors of sorts.
“Yakuza are dropouts from society. They’ve suffered, and they’re just trying to help other people who are in trouble.” — Miyazaki
Boom and bust
The Japan of the 1980s achieved extraordinary levels of economic growth. Many referred to the period as the “age of the bubble”, with remarkable stock and land price increases seen across Japan, as well as an investment and consumption boom.
The Japanese Bubble Economy was set in motion in 1985, when U.S. Secretary of the Treasury James A. Baker III got together with the finance ministers of Britain, France, West Germany and Japan in an effort to reduce the value of the dollar to increase the export of American goods. Referred to as the 1985 Plaza Accord, this plan worked, but also doubled the purchasing power of the yen.
Corporate investment rose sharply in 1988 and 1989. With higher stock prices, new equity issues swiftly rose in value, making them an important source of financing for corporations, while banks sought an outlet for funds in real estate development. Corporations, in turn, used their real estate holdings as collateral for stock market speculation, which during this period resulted in a doubling in the value of land prices and a 180 percent rise in the Tokyo Nikkei stock market index. By the end of 1990, the Tokyo stock market had fallen 38 percent, wiping out 300 trillion yen (US $2.07 trillion) in value, and land prices dropped steeply from their speculative peak. This plunge into recession is known as the bursting of the bubble economy and led to what many refer to as the ‘Lost Decade’ in 1990s Japan.
The Yakuza at different levels were heavily involved in many legitimate and illegitimate businesses in the late 1900’s. These included the sex industry, drug trade, real estate and construction, and wide scale business and night club ownership. The Yakuza quite often receive “protection money” from small business owners on their turf, to prevent them falling victim to petty crime, including theft and battery, from smaller gangs such as Bōsōzoku.
Real estate
Japan’s housing bubble during the late 1980s made rich many white-collar yakuza who were doing business in real estate at the time.
Real estate was one of the Yakuza’s first big white-collar scams. In the 1980s, the Yakuza started sending their enforcers off to work for real estate agents. They were called the Jigeya. Real estate agents would hire a Japanese gangster when they wanted to demolish a residential area and put in a new development, but couldn’t get one stubborn landowner to leave. The Jigeya’s job was to get them out.
They’d put unpleasant things in their mailboxes, scrawl obscene words on their walls, or, in at least one case, empty the contents of an entire septic tank in through their window. Whatever it took to get someone to sell, the Yakuza would do it. They did the dirty work and, according to Yakuza member, the government let them do it.
“Without them, cities wouldn’t be able to develop. The big corporations don’t want to put their hands into the dirt. They don’t want to get involved in trouble. They wait for other companies to do the dirty business first.” — Suzuki
Publicly, the Japanese government has washed their hands of them — but Suzuki might not be entirely wrong. More than once, the government itself has been caught hiring the Yakuza to muscle people out of their homes.
Drug trade
While not often spoken about, Kakuseizai (覚醒剤), or it’s slang word Shabu (シャブ) commonly referred to as speed, amphetamines, or meth, was a stimulant used by soldiers in Japan during WWII. It was sold during the war under the brand name Hiropon, first being introduced in 1941 as a drug to help people “work harder”. As the side-effects of the drug became well-known and the number of addicts grew, it was finally banned in 1951. The Yakuza stepped in to fill the gap when production ceased and trade in the drug became one of their early primary sources of revenue.
Kakuseizai has become the drug of choice in Japan’s underworld, and the trade that has proved more lucrative for the Yakuza, even more so than the sex industry and accounts for up to one-third of total revenue. Virtually the entire business in Japan is run by the Yakuza.
The Lost Decade
During the 1980s, Japanese society was flourishing. Japan boasted the highest Gross National Product worldwide, riding a wave of success from the 1970’s. However by 1991 Japan had entered an economic and social crisis known as the Lost Decade. Some estimates indicate that up to 40 percent of the bad loans left after the bubble collapsed were either directly or indirectly tied to the Yakuza.
As Japan suffered harsh social and economic setbacks in the 1990s, so too did the Yakuza. The implementation of anti Yakuza legislation in the 90s and 00s has drastically impacted how these crime families operate and survive.
Anti Yakuza legislation
The implementation of the Anti-Boryokudan law in 1992 has resulted in the dissolution of 192 Boryokudan in Japan. Boryokudan or “violence group” is any organisation that is likely to help its members to collectively and habitually commit illegal acts of violence. Anti-gang laws enacted in 1992 made it easier to close down gang offices, search gang properties and arrest bosses and senior members for crimes committed by their underlings.
These harsh laws have severed the arteries of many Yakuza families, with numbers dwindling and ageing gangsters holding this once great organisations together by a thread.
Part III: Once in the Mob, always in the Mob
The collapse of Japan’s bubble economy in the late 80s drastically changed the structure and operation of organised crime groups across the country. With less money floating around the Japanese economy, it was difficult for the Yakuza to continue their operations in the same capacity.
Organisations began to split, and avenues such as financial markets and construction began to be substituted with drugs, prostitution and for some smaller groups, petty crime and street fighting.
In an attempt to fight back against the increasing levels of crime, the Japanese government periodically introduced new laws to attack Yakuza, until, finally, they made a move that would impact the Yakuza harder than ever. These were the Boryokudan (Yakuza) Exclusion Ordinances, introduced across Japan, enforced first in Tokyo, 2011.
The Heisei era (1989–2019)
The Heisei era in Japan saw some of the most violent periods in the nations recent history. From the sarin gas attack by the Aum Shinrikyo cult in 1995, to the increased violence from biker gangs and on going Yakuza feuds.
The introduction of Yakuza Exclusion Ordinances were a new tactical approach by the Japanese government to counter Yakuza operations.
The Japanese government is seeking to shift the battle from a Yakuza vs. the Police framing to a Yakuza vs. the People. Rather than fighting the Yakuza directly, this allows the police to rely more on social pressure and stigma to isolate and impact the Yakuza in a more indirect way, rather than criminal punishment.
These exclusion ordinances impact businesses, services and private citizens. Many Yakuza talk about how their lives have been greatly impacted by the introduction of these new social pressures.
First introduced in Tokyo, these laws incentivise companies not to cooperate or collude with organised crime groups. The price for being linked to the Yakuza can be public humiliation, loss of revenue, legal punishment, revocation of licenses and termination of rental agreements. Individuals can be fired from their jobs or forced to resign.
This places responsibility on civilians to lead the battle against Yakuza.
The Tokyo ordinances include, but are not limited to:
Prohibition of payoff (Article 24–1)
- prohibits business owners from giving property benefits to the yakuza and its associates as payback for illegal demanding acts or illegal acts which benefit the business owner.
Prohibition of payoff that assists the yakuza’s activities or operations (Article 24–3)
- prohibits business owners from giving property benefits to the yakuza which assists the yakuza’s activity or operation, knowing they are the yakuza.
Prohibition of close contact with the yakuza
- can include doing business, playing golf, or eating together
Exclusion from private-sector businesses (Article 18)
- when a company makes a contract with a customer, the company is encouraged to add a term to confirm that the customer (whether operating as a business or an individual) is not a yakuza member.
The laws and regulations put in place have continued to impact how Yakuza operate not only as an organisation, but also as an individual in Japanese society.
A list of laws and regulations that impact the Yakuza:
- cannot open a bank account
- cannot apply for a credit card
- cannot own a mobile phone: to be precise, mobile phone operators cannot make a contract with known Yakuza members
- cannot buy a car
- banned from golf courses
- cannot rent a house or apartment
- members of criminals organisations and, in some cases, people with tattoos, cannot enter specific areas or private properties such as gyms, pools (signs stating No Yakuza can often been seen on front doors
The Yakuza are able to navigate around some of these issues, but there is a hidden cost. Anyone who assists, or is under the suspicion of assisting, a member of a crime organisation may be publicly shamed, fined, imprisoned, or all of the above. This leads to further ostracising of members, particularly when they choose to leave the Yakuza, as many normal members of society avoid interacting with them or actively discriminate against members and their children.
How did the Yakuza respond?
Initially the Yakuza adapted internally, whilst engaging in aggressive public relations campaigns, and even legal battles against the law. The external actions came to a peak on the date of the Anti-Boryokudan Law’s enactment; around 130 Yakuza members protested in Ginza, claiming that the new law would lead to human rights abuses by the police. Internally, the metamorphosis required subtle changes in conduct and visibility. After the enactment of the Anti-Boryokudan Law, it was reported that Yakuza groups held a meeting where they distributed a manual entitled ‘How to Evade the New Law’. In general, Yakuza groups attempted to reorganise. They replaced public signage at their headquarters and restructured their organisations in an effort to appear more like legitimate organisations.
Leaving isn’t so easy
There are many cases of Yakuza members leaving in an attempt to live a normal life. One member claims he could not find permanent work when he tried to leave the criminal world, and when he managed to find work as a labourer he was mistreated so badly he eventually returned to a Yakuza organisation.
The disillusionment felt by members of the Yakuza is much like any displaced individual. Losing a sense of belonging as well as being unable to reconnected with the civilian world is a harsh reality for excommunicated members.
Many members with young children find it particularly difficult leaving as the exclusion orders prevent them from participating in normal life. When it comes to not being able to have a bank account members are unable to pay for their children’s school meals and school fees. This makes the school aware that these are gang members.
As a result, the children of Yakuza are often persecuted, which can lead to them being rejected by schools, or excluded from activities.
This has left Japanese authorities with the difficult task of integrating Yakuza into mainstream society.
Flying away
Flying away refers to the severing of all connections and disappearing without a trace. This is a common phenomenon across Japan, sometimes referred to as Jouhatsu, evaporating people. Organisations specialise in disappearing people into the night, providing them with a new identity in a new city.
There are members of groups who have spoken anonymously of their detachment from their gang. Some leave when their Oyabun dies, other’s disappear to avoid the punishment of death. Unfortunately the life of the Yakuza isn’t so easily left behind.
I am the law. If you don’t like it, you die…
In August of 2021, 74 year old Yakuza boss Satoru Nomura was sentenced to death for conspiracy to commit murder. Many Japanese media said the verdict came despite a lack of evidence directly linking him to the crimes.
“I asked for a fair decision… You will regret this for the rest of your life” — Nomura told the judge after receiving his sentencing.
Japan is one of the few nations who still carry out the death penalty, much to public disdain. Executions in Japan are carried out in secret and the dates of the execution are not revealed to the inmates until the morning they are hanged. The country’s government insists it still needs the death penalty, despite numerous instances of false convictions. Iwao Hakamada was wrongfully convicted in 1968, after the police tortured him for 23 days to secure a confession, at a trial where the prosecution fabricated evidence.
“Yes — give them penalties when they break laws. My point is, it’s wrong to penalise them when they are breaking no laws. The modern law says everyone is equal before the law — without a clause that says, except those who are yakuza.”
- Manabu Miyazaki on the Yakuza Laws.
Jake Adelstein, a reporter who has covered the Yakuza in Japan for decades, and has a great write up on the the current issues surrounding the death penalty in Japan.
The Twilight of the Yakuza is a 2013 documentary that shows first hand the experiences of an ageing collective of gangsters, and how they are struggling to attract new members and maintain their presence in the light of changing laws.
These laws could ultimately lead to a dangerous fragmenting of organisations that could threaten the stability of the Yakuza world. This could mean increased gang warfare, or the creation of breakaway groups and new gangs with a willingness for violence, who are eager to engage in the more ‘dirty’ criminal acts.
One thing is certain, the authorities of Japan are left with a difficult scenario to manage.
It is important to note that while we should celebrate blows to criminal organisations, we should be very aware of human rights abuses that can, and arguably have, arisen as a result of the Japanese government’s ongoing battle with the Yakuza.
Fin.
The Collapse of the Yakuza was originally posted on APAC Voice, a publication that explores social phenomenon in the Asia Pacific.
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