Buy Stocks, Get Free Meals: From Sushi to Chocolate... Japan's Extraordinary Shareholder Benefits [Delicious Stories]

Meal Vouchers and Coupons for Stock Investments
Boosting Loyalty Among Small Shareholders in Japan
Originated from 19th Century Railroad Boarding Passes

Editor's NoteThe earliest confections are believed to have been discovered in ancient Mesopotamian civilization. Sweets have thus accompanied every moment throughout human history. From biscuits and chocolate to ice cream, we bring you delicious stories behind the treats we love.

Mr. Hiroto Kiritani, a Japanese asset holder who receives annual preferential treatment from over 1,000 listed companies to cover his living expenses including food, clothing, and shelter. SCMP capture

Free sushi at Kurasushi, a beef bowl bento from the flagship store of Kakiyasu, and a generous pouch of chocolate from Jeong Young Food Industry—these are all examples of shareholder benefits provided by companies listed on the Japanese stock market. The shareholder privilege system is a unique feature of the Japanese stock market that offers products or services from the company to its shareholders. In Japan, where this privilege system is well developed, there are even wealthy individuals who manage to cover all their basic living needs—food, clothing, and shelter—using only these shareholder perks.

Invest in Stocks, Get Meal Coupons and Snacks

Shareholder preferential voucher provided by the Japanese food processing company Jeongyoung Food Industry. They send a box containing their chocolates, nuts, and more. Online community screenshot

Publicly listed companies in Japan operate a shareholder privilege system. Because all trading units on the Japanese stock market are standardized at 100 shares, it is challenging to attract small shareholders. As a result, listed companies provide shareholders who have invested in at least 100 shares in their company with tangible goods such as vouchers, coupons, and other items.

Given the large number of food companies listed on the Japanese stock market, the selection of shareholder perks in the form of goods is also diverse. Shareholders can receive not only airline tickets and travel vouchers but also meal discount coupons, free cookies, chocolate, ice cream, and even beer, covering both desserts and alcoholic beverages.

Some Even Live Solely on Shareholder Privileges: The 'God of Freebies'

The shareholder privilege system in Japan originated in the mid-19th century, during a period of rapid modernization. At that time, Japanese railway companies expressed their gratitude to investors by offering them priority boarding passes. This practice is known to have evolved into today's shareholder privilege system.

Every year, a "Shareholder Privilege Handbook" is published in Japan, providing information on the shareholder benefits offered by each company. This guide details the monthly benefits offered by listed companies and is considered essential reading for retail investors looking to maximize their perks.

There are even so-called "gods of freebies" in Japan who manage to cover their entire living expenses—food, clothing, and shelter—exclusively through shareholder privileges. One such person is Hiroto Kiritani, a former professional shogi player and investor, now aged 75. Holding stock assets worth 600 million yen (about 5.45 billion KRW), Kiritani is known for his frugal lifestyle in which he rarely uses cash, crediting shareholder benefits as his secret.

Receiving benefits from over 1,000 listed companies, he survives on the food and desserts sent by these companies each year. In an interview with a local media outlet, he shared his life philosophy, saying, "It's embarrassing not to use privileges before they expire."

Still Strongly Supported by Japanese Retail Investors Today

The shareholder privilege system continues to enjoy strong support among Japanese shareholders. In 2023, the sushi chain Kurasushi attempted to abolish its shareholder privilege program to strengthen regular dividends, but faced strong backlash from shareholders and ultimately reversed its decision.

A Kurasushi restaurant, a Japanese sushi chain. Kurasushi offers meal vouchers as preferential benefits to shareholders holding over 100 shares. Kurasushi website

The loyalty of shareholders to companies offering privileges is also high. According to a study by global financial institution Goldman Sachs, which analyzed 10 periods of sharp declines in Japanese stock prices since 2022, share prices of companies with privilege systems outperformed the Tokyo Stock Price Index (TOPIX) by an average of 3 percentage points (p).

According to the Nikkei, as of this year, 1,682 companies listed in Japan have adopted the shareholder privilege system, representing 37.3% of all listed companies—the highest rate in seven years.

While the shareholder privilege system is rare in South Korea, where dividend systems are more highly developed than non-cash rewards, some companies have started to introduce it. For example, the Korean food company Ottogi offers a 20% discount coupon for its official online shopping mall, Ottogimall, as a shareholder privilege.

This content was produced with the assistance of AI translation services.