Japanese Business Glossary

繰越利益剰余金 (kurikoshi rieki jouyokin) refers to retained earnings carried forward in Japanese accounting. This term represents the portion of a company's profits that has been retained and accumulated over time, rather than being distributed as dividends to shareholders.

Retained earnings are used to reinvest in the business, pay off debt, or save for future needs and projects. The kurikoshi rieki jouyokin is reported on the company's balance sheet under shareholders' equity. It is a critical measure of a company's financial health, indicating its ability to generate profits and manage them effectively for growth and stability.

仕組債 (shikumisai) refers to structured bonds in Japanese. These are complex financial instruments that combine traditional bonds with derivatives to offer customized investment solutions.

Structured bonds are designed to meet specific investment goals, such as enhancing returns, reducing risk, or providing exposure to particular assets or markets. They often have features like variable interest rates, payments linked to the performance of an underlying asset (such as stocks, commodities, or indexes), or built-in options for the issuer or holder.

Investors in shikumisai can benefit from tailored financial strategies, but they also face higher risks due to the complexity and potential volatility of these products. Therefore, thorough understanding and careful consideration are crucial before investing in structured bonds.

公共機関 (kokyo kikan) refers to public institutions or public agencies in Japan. These are organizations that provide essential services to the public, such as government offices, utilities, and public transportation systems. Public institutions in Japan play a crucial role in maintaining societal infrastructure, ensuring the well-being and safety of the community, and supporting economic and social activities. They are responsible for various functions, including administrative services, law enforcement, healthcare, education, and welfare services. The aim of these institutions is to serve the public interest and provide services that are accessible to all citizens.

個人年金 (kojin nenkin) refers to private pensions or individual annuities in Japan. These are financial products designed to provide individuals with a steady income during retirement. Unlike public pensions provided by the government, individual annuities are typically purchased from private insurance companies or financial institutions. Individuals make regular contributions to these plans during their working years, and in return, they receive periodic payments after retirement. The purpose of kojin nenkin is to supplement the public pension system, offering additional financial security and stability in one's later years. They are an important component of retirement planning in Japan, helping individuals maintain their standard of living after they stop working.

根拠 (konkyo) in Japanese means "basis," "foundation," or "grounds." It refers to the underlying reason, justification, or evidence that supports a statement, decision, or belief. In various contexts, konkyo is crucial for establishing credibility and legitimacy. For instance, in legal settings, it pertains to the evidence and legal grounds for a case or argument. In business and academic environments, konkyo is essential for validating claims, strategies, or research findings. The concept emphasizes the importance of having a solid and reliable foundation for any assertion or action, ensuring that decisions and opinions are well-supported and trustworthy.

資本 (Shihon) in Japanese refers to "capital" in the context of finance and economics. It encompasses the financial resources and assets that individuals, businesses, or organizations use to fund their operations and growth. Capital can take various forms, including money, equipment, buildings, and other assets that have value. In business, shihon is essential for starting and expanding operations, investing in new projects, and sustaining overall economic activity. It can be raised through different means, such as investments, loans, or reinvested profits.