Overview of the National Police Agency Report
On June 15, 2020, the National Police Agency published a fact-finding report on the relationship between the sex industry and organized-crime and quasi-organized-crime groups. Cases of sex-business operation or involvement by organized-crime figures identified by the prefectural police of all 47 prefectures during 2019 numbered 165, up roughly 10 percent from the previous year (150).
The report listed the following patterns of organized-crime involvement in the sex industry:
- Direct operation: A gang member or associate runs an establishment under a borrowed name.
- Kickback type: The business appears to be run by an ordinary person, but a set percentage of revenue is paid up to the gang.
- Enforcer / protection-fee type: The gang demands money under the pretext of "resolving trouble."
- Scouting / brokering type: A gang-affiliated organization is involved in recruiting women or in human trafficking.
The Limits of Organized-Crime Exclusion Ordinances
On the background to why involvement is trending upward even though organized-crime exclusion ordinances are in place in every prefecture, the report points to "increasingly sophisticated involvement through front companies and name-lending."
Because the nominal operator is an ordinary citizen with no direct ties to the gang, the books look like a legitimate operation, and it takes time for authorities to grasp the reality. The report also states that money movement using cryptocurrency makes the flow of kickbacks difficult to trace.
Voices from the Field
A senior police official said: "Through departures from gangs and the rise of 'hangure' (semi-gray) groups, more associates do not appear on the traditional lists of gang executives. The reality is that they are becoming harder to catch in the net of the Anti–Organized Crime Act." So-called "hangure" (quasi-gang groups) are increasingly moving into the sex industry, and a review of the traditional enforcement framework is being called for.
Response from Industry and Government
An industry association reaffirmed its policy of "completely severing any relationship with antisocial forces." It is strengthening coordination with local police stations to make submission of a written pledge regarding organized-crime exclusion mandatory when new establishments open.
At the same time, at small, individually run establishments, the vetting tends to be a mere formality, and the reality is that complete exclusion has not been achieved.
This article was compiled based on publicly available information.