【Original May 11, 2024】
A new law on the protection and use of critical economic and security information was enacted to establish a security clearance system under which the government certifies those considered worthy of handling critical information in the economic and security fields.
While this is a step forward in strengthening information security, the new law alone is not enough. In order to ensure that all precautions are taken, an anti-espionage law must also be enacted to crack down on spying activities.
Increasing Need for Preserving Information
The new law designates information that could hinder security, such as that related to cyber countermeasures and vulnerabilities in supply chains, as “critical economic and security information.” The government will make assessments based on seven criteria, including criminal records and mental illness, and only provide sensitive information to those not deemed to be at risk of leaking information. Penalties and punishment up to five years in prison will be imposed if caught leaking information.
Behind the enactment of the law is the growing international need for information security due to the expansion of the area of dual-use technologies such as artificial intelligence (AI), which can be used for both military and civilian purposes. Japan is the only country among the Group of Seven (G7) that does not have a system in place for government certification of those qualified to handle information that is subject to economic security, which has barred several engineers and technicians from participating in (high-level) international conferences.
A security clearance system was introduced in Japan under the Specially Designated Secrets Act enacted in 2014, covering four areas of defense, diplomacy, espionage prevention, and terrorism prevention. Now that the system has included critical economic and security information, companies can more easily participate in joint research with counterparts in foreign countries, thereby expanding business opportunities.
On the other hand, the security clearance includes a background check, leading to concerns over some of its pitfalls, such as invasion of privacy. The new system not only targets public servants but also employees of private companies. Results from the security clearance checks, such as personal information, must not be leaked. The government, which will conduct the screenings, will be required to exercise strict control of the information.
Foreign industrial espionage in Japan is intensifying: In January 2020, a former Softbank employee was arrested for leaking confidential information on telephone base stations, allegedly at the instigation of a Russian diplomat. In June 2023, a Chinese researcher at the National Institute of Advanced Industrial Science and Technology (AIST) was arrested on suspicion of leaking research data on fluorine compound synthesis technology to a Chinese company, which constituted trade secrets.
Adding the industry field in the security clearance would help strengthen the fight against industrial espionage. However, this alone would not be enough. The biggest problem is that Japan has no law against espionage.
The Espionage Prevention Bill submitted to the Diet in 1985 set the maximum penalty at death or life imprisonment. This is because espionage poses a serious threat to national security. The death penalty is even the maximum penalty for espionage in many countries.
Deter Foreign Activity In order to protect Japan’s security, it is imperative to prevent, at all costs, the leak of not only secrets regarding the defense system and other matters, but also information on cutting-edge technologies. To deter foreign espionage, the enactment of the Espionage Prevention Act and the creation of a full-fledged counter-intelligence agency should be hastened.
