September 26, 2025

Akahata editorial (excerpts)

The issue of massive unpaid construction fees owed to small- and medium-sized subcontractors who undertook the construction of overseas pavilions for the “Expo 2025 Osaka, Kansai” remains unresolved.

Those who have been affected by non-payment include subcontractors involved in building pavilions for countries such as Angola, India, Uzbekistan, Serbia, Thailand, China, Germany, the United States, Poland, Malta, and Romania.

According to the National Federation of Traders and Producers Organizations (Zenshoren), based on the eleven consultations it received alone, the total amount of unpaid fees exceeds 400 million yen. Several subcontractors have filed a lawsuit against the French company “GL events”, seeking more than 300 million yen in back pay. The total unpaid amount is likely to be far more substantial. GL events has won a 63-billion-yen contract for the “20th Asian Games Aichi-Nagoya 2026”. Its eligibility is now being questioned.

Because of the delayed commencement of construction, many subcontractors were forced to work around the clock to meet the event opening deadline. Despite that, some have had their construction fee payments refused on the pretext of “contract breaches” due to their delays in completion.

A major factor for the delay in the start of construction was the insistence of Osaka Governor Yoshimura Hirofumi (deputy chairperson of the Expo Association and leader of the “Nippon Ishin no Kai” party) and the “Japan Association for the 2025 World Exposition” on holding the Expo on the artificial island of Yumeshima, known for its soft ground. Major general contractor construction companies were hesitant due to the anticipated high costs associated with the necessary ground improvement work. Consequently, Gov. Yoshimura and the Expo Association called on local small- and medium-sized enterprises to take on the contracts. As a result, unlicensed companies without proper construction permits infiltrated the construction project as prime contractors and first-tier subcontractors.

Yoshimura pressured contractors, saying, “We will absolutely make it open on time,” thereby allowing even unlicensed contractors to enter the construction project. Nevertheless, he asserts that the situation is “a private-sector issue”.

However, the Construction Industry Act requires prime contractors to take responsibility for preventing non-payment of subcontractor fees, workplace accidents, and illegal labor practices. In the first place, the national and local governments are responsible for supervising and instructing business entities. The Expo Association is also responsible as the contractee. Their overall evasion of responsibility is unacceptable.

Past related article:
> Osaka Pref., City, and Expo Assn. treat unpaid construction costs as someone else’s problem [August 13, 2025]