'Chronic Fiscal Crisis' in Japanese Prefecture: Anonymous Donation of Gold Bars Worth 7.3 Billion Won

Hyogo Prefecture Receives 70 Gold Bars Weighing 35kg

Fiscal Crisis Looms Since the 1995 Great Earthquake

In Japan's Hyogo Prefecture, which has long struggled with chronic financial difficulties, an anonymous donation of gold bars worth billions of won has become a major topic of discussion.

On September 17, Yonhap News, citing the Yomiuri Shimbun, reported that Hyogo Prefecture had received a donation of 35kg of gold bars from an anonymous individual the previous day. The market value of these gold bars is 834 million yen, equivalent to about 7.33878 billion KRW. The donor first contacted Hyogo Prefecture for consultation in February this year, and sequentially delivered a total of 70 gold bars up until September 8. This is the largest donation Hyogo Prefecture has received in recent history. According to available records, the previous highest personal donation since 2023 was 125 million yen (about 1.1 billion KRW). Prefectural officials have decided not to disclose the donor’s name, age, or motivation, as revealing such information could identify the individual.

Gold bullion. The photo is unrelated to the specific content of the article.

Hyogo Prefecture explained that, after a resolution by the prefectural assembly, the gold bars would be sold and the proceeds used for local development, as specified by the wishes of the donor. The prefecture has suffered persistent fiscal hardship since the major damage caused by the 1995 Great Hanshin-Awaji Earthquake. To cover the substantial costs of disaster recovery and community revitalization, the local government issued large-scale regional bonds; so far, 2.3 trillion yen (about 20.2 trillion KRW) have been spent on disaster recovery alone. Nevertheless, 113.8 billion yen (about 1.0013 trillion KRW) in disaster-related regional bonds remain unresolved.

In addition, the recent rise in interest rates has increased the prefecture’s interest burden, raising the possibility that Hyogo could become the first among Japan’s metropolitan governments to be designated an "Early Fiscal Rehabilitation Municipality"—a status reserved for local governments at risk of fiscal collapse. Last month, after Hyogo Prefecture became a "bond issuance approval municipality," meaning it must now receive national approval to issue local bonds, the prefectural government announced it would cut investment costs such as road maintenance and facility repairs by more than 10% starting next year.

Motohiko Saito, governor of Hyogo Prefecture, said in a press conference the previous day, "The prefecture’s finances are in an extremely severe situation, and I would like to express my heartfelt gratitude for this warm gesture."

Meanwhile, in February this year, a similar anonymous gold bar donation occurred in Japan. A man donated 21 kg of gold bars to Osaka City Waterworks Bureau, requesting they be used for the aging water pipes project. According to news reports such as the Yomiuri Shimbun on February 19, Osaka City announced it had received 21 kg of gold bars from an anonymous donor. The market value at the time was about 566 million yen, equivalent to around 5.3 billion KRW. The donor expressed their wish for the gold bars to be used for aging water pipeline countermeasures. The will to donate was conveyed in November last year. Reportedly, the donor decided to make the gift after seeing news about frequent water pipe leaks and failures occurring across Japan.

The Osaka City Waterworks Bureau described the donation as "an amount unprecedented in the history of waterworks-related donations." In line with the donor’s wishes, the gold bars will be used to cover costs for replacing aging water pipes. The estimated value of the donated bars is enough to replace approximately 2km of standard piping. Hideyuki Yokoyama, mayor of Osaka, said at a press conference, "The amount is so great that I'm at a loss for words," adding, "Addressing aging water pipes requires significant investment—we can only be grateful."

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