Japan's Prime Minister Shigeru Ishiba announced his resignation on a Sunday evening, a move that surprised many but had been anticipated since the ruling Liberal Democratic Party (LDP) struggled to recover from a years-old funding scandal. The scandal, which involved dozens of LDP lawmakers siphoning unreported profits from ticket sales into slush funds, had already forced his predecessor, Fumio Kishida, to step down.
Ishiba, who had long coveted the top job, called a snap election shortly after becoming LDP president in October 2024, seeking a public mandate. However, the gamble backfired: the LDP and its coalition partner Komeito lost their majority in the lower house, forcing Ishiba to lead a minority government.
His tenure was marked by soaring rice prices, the return of a tariff-happy Donald Trump, and an emboldened North Korea. In July 2025, the LDP again lost its majority, this time in the upper house, delivering a second blow to Ishiba's fledgling government.
The funding scandal remained a central issue. Ishiba issued an apology after giving gift certificates to newly elected LDP lawmakers, which critics said reflected a culture of monetary rewards within the party. The Mainichi Shimbun noted that lawmakers had “underestimated” public anger over money in politics, and that most of those involved were never indicted.
As the LDP prepares for a leadership election in early October, party leaders seek a successor who can promote unity and stabilise the government. Political risk analyst Tobias Harris warned that the LDP's existential crisis could overshadow economic and foreign policy debates, and may lead to the party going into opposition for only the third time in its history.
