Each week, here at Osaka.com, we bring you a selection of some of the top stories about Osaka making the local and national news here in Japan. Sometimes it’s serious, sometimes it’s funny, but it’s always direct to you, from Osaka.
Here’s a look at some of the stories hitting the headlines in Osaka this week.
Table of Contents
Kobayashi Pharma to End Involvement in Red Yeast Extract Industry
At least 107 people are now thought to have died as a result of using Kobayashi Pharma’s Beni Kouji supplement.
The supplement’s primary ingredient is a form of red yeast extract. Inspections of company premises earlier this year showed mold and bacteria in areas where the extract was cultivated. It also suggested improper hygiene practices at the firm’s production plant was the cause.
With compensation claims due to start processing on August 19th, the company announced an end to its red yeast extract business this week. The extract has been linked to kidney failure and numerous other health problems. In addition to the 107 suspected fatalities, a further 467 people were hospitalized after taking the supplement.
Company Withdrawal Unlikely to End Controversy
Officials at Kobayashi Pharma said this week: “This is the right thing to do. In doing so, we considered the serious health hazard and inconvenience this has caused to society.”
However, public anger remains. In addition to the lost lives, there’s also the extremely haphazard approach to cleanliness and basic hygiene practices the firm’s yeast production plant employed.
The number of connected cases and deaths will, most likely, increase considerably as compensation claims start to come in. This seems like one of those occasions where corporate Japan’s usual approach of communal bowing and saying sorry will not bring an end to the matter.
To add further insult to injury, investigations also showed that Kobayashi knew their production facilities were compromised as early as January. However, they did not end production of the extract or make their concerns public until more than two months later.
Expect several high-profile lawsuits in the near future. Investigations continue and speculation remains around the company’s senior management facing criminal charges. Analysts however interpret the announcement of an end to their involvement in the sector as Kobayashi “trying to get out ahead of the coming storm.”
Whatever happens, expect to read more on this developing story in the coming months.
Takashimaya Penalized for Failing to End Illegitimate Tax Free Sales
It wasn’t just pharmaceutical companies feeling the wrath of regulators in Osaka this week.
The nationally renowned department store Takashimaya, based in Chuo Ward, faces an additional 570 million yen (34 million US dollars) tax bill. The penalty relates to sales of tax free goods to ineligible customers. Under Japan’s current regulations, non-resident foreign visitors (those with a visa of 90 days or less validity) can enjoy tax free shopping while they are in the store. However, investigations found that Takashimaya also made these sales to foreigners who not only live in Japan, but hold permanent residency.
When a customer buys an item from a store offering tax free shopping, staff are expected to check the visitor’s passport. They do this to ensure the customers only have a tourist visa. Foreigners in possession of any kind of residence permit or working visa are not allowed to utilize tax free shopping services.
Takashimaya however, is not about to just “shut up and pay up”. Representatives of the store made counterclaims in submissions this week. “It is possible to make tax free sales to permanent residents if certain conditions are met.” Their reluctance to elaborate on the nature of these “certain conditions” makes one wonder if they actually have any basis at all.
Other large department stores in Osaka fell foul of the same regulations in recent months. Kintetsu, Hankyu Hanshin and Isetan Mitsukoshi all have cases ongoing for similar infractions.
And Finally…
Tennis star Naomi Osaka claimed another big scalp on her way back to the top of the women’s tennis rankings this past Wednesday. The four-time grand slam champion overcame Tunisia’s Ons Jabeur at the National Bank Open in Toronto, Canada. Ons was the tournament’s number nine seed, and currently sits in the top twenty of the Women’s World Tennis rankings. Osaka now faces Belgium’s Elise Mertens in round two this weekend. Osaka has struggled to regain her previous form following maternity leave. However, she was in buoyant mood following her win, and maintains a positive outlook as the long road back to the top continues.
That’s all for now but be sure to check back again same time next week for another round of this week in Osaka!
