The Evolving Nature of Japanese Criminal Organisations and Predictions for the Future  

Abstract

The yakuza have been present in Japanese society for centuries and are a highly sophisticated organised crime group who have been confronted with countless policing and legislative measures. This thesis will outline their history starting with the legends of the machi-yakko who bravely protected the common people against attacks from the hatamoto-yakko, a band of masterless warriors who roamed Japan’s countryside. Although no evidence supports this group as being the true ancestors, many members of the public believe that organised crime in Japan bears a noble past. The history of the true ancestors, the gamblers, and the street peddlers, is traced through their emergence in the 18th century during the Tokugawa Shogunate through the Meiji Restoration Period, the Showa Era, and the Heisei Era. The Taisho era is not included in this as the yakuza did not evolve in a significant manner in this period. The second chapter of this dissertation presents the well-known characteristics of the yakuza such as yubitsume (finger-amputation), full body tattoos, and sake ceremonies as well as group characteristics such as the oyabun-kobun relationship and their organisational structure. As the yakuza face an increase in crime control techniques, they were forced to once again adapt and reorganise, leading to expansion into different rackets. Although they still commit their traditional crimes of gambling, protection rackets, and prostitution, these Japanese gangs have evolved into financial gangsters who would do just about anything to acquire income. This thesis will conclude by analysing the relationship between these gangsters with the state, authorities, and society and make predictions on the future of these organised crime groups as they navigate the criminal underworld and the consequences of the Covid-19 pandemic. 

Introduction 

The yakuza are an infamous criminal organisation whose lineage can be traced back to ancient Japanese society. They evolved throughout history, facing countless crackdowns by the police and government, economic crashes which significantly impacted their sources of income, and a major shift in outlooks from society. These groups have a strong foothold in modern day Japan and have stepped foot in international markets. Although the yakuza have been actively involved in criminal acts for centuries, the efforts made by the National Police Agency, Prefectural Police, and the Japanese government on handling the organised crime epidemic Japan faces are miniscule in comparison to other countries who are also experiencing a growth in organised crime, such as Italy and the United States. After examining the portrayal of the yakuza in the media, academic journals, and evaluating their relationships with society and government agencies, it is apparent that these syndicates vary throughout history. The first chapter of this literary analysis will outline the history of these criminal organisations starting with the Tokugawa Shogunate and the legends of the machi-yakko and hatamoto-yakko in the 17th century and the spiritual connection the gangs have made. The emergence of the bakuto and tekiya groups during the 18th century will then be discussed as there is factual evidence through historical tracing that the yakuza emerged from these two groups. Following this, is the Meiji Restoration and the shift in attitude towards the yakuza from the Japanese government. The era of the Taisho Democracy, characterised with a peak in liberalism prior to the Second World War, saw the creation of the Great Japan National Essence Society, the first national federation of gangsters. After this era is the Showa Period of Japan which includes the aftermath of World War II. Post War Japan will be further categorised into five distinct periods which have been outlined in the 1989 Ministry of Justice White Paper on Crime. This coincides with how organised crime groups in Japan have evolved into mafia-like operations. The periods of this post war era include Post War Confusion; Gang War Period; Summit Strategy Period; Reorganisation Period; and the Reformation Period. Chapter two will introduce traditions associated with Japanese organised crime syndicates such as finger amputation, tattooing, and their ritualistic sake ceremonies. Following this, major yakuza operations such as the drug trade, crimes interfering in civil affairs, and the emergence of the new economic gangsters will be discussed. The third chapter of this thesis will present the policing strategies implemented by the Japanese legislature which are specifically aimed at the yakuza organisation and deployed by relevant policing agencies in Japan on a national and prefectural level. It will focus mainly on the Anti-Boryokudan Law implemented in 1992, how it has impacted criminal syndicates, and address the major revisions made since its enactment. Yakuza Exclusion Ordinances will also be discussed in this chapter and how the Japanese government have incorporated the local community in policing organised crime on a prefectural level. The final chapter of this report will outline the evolving nature between the yakuza, society, and the government; how they have handled the Covid-19 pandemic; and will conclude with an outline on the possible outcome for the criminal syndicate. 

Chapter 1: Early Yakuza

The name ‘yakuza’ derives from a traditional card game called hanafuda where the combination of the cards eight (ya), nine (ku), and three (za) equate to zero and directly translates to ‘unwanted’, ‘worthless’, and ‘useless’ (Kaplan & Dubro, 2003, p. 13; Hill, 2003b, p. 36). This term has been applied to early gambling groups known as the bakuto (Hill, 2003b; Hill, 2004; Schloenhardt, 2010). Although purists believe that bakuto are the true embodiment of organised crime in Japan, this term has been applied to both bakuto and tekiya groups. Although this term derogatory term has been reclaimed by these criminal organisations, the National Police Agency has opted for a more neutral and politically correct term, boryokudan, meaning ‘violent groups’ (Kaplan & Dubro, 2003, p. 179). Takahashi and Becker (1985, p. p. 1 cited in Huang & Vaughn, 1992, p. 20) have further defined this term as ‘organisations or gangs which habitually commit violent illegal actions.’ Within the gangs, the refer to themselves as ninkyo dantai, chivalrous organisation and gokudo, those who will go all the way (Adelstein, 2009 cited in Higgins, 2014, p. 191; Hill, 2003b, p. 201-2), which more than likely is attributed to the spiritual connection made to the Robin Hood like gangs, the machi-yakko (Hill. 2003b, p. 38). To prevent the glorification of these criminal syndicates, this report will use the terms boryokudan and yakuza when referring to these gangs. 

Organised crime groups are known for being highly sophisticated and are infamous in Japanese society, however, they were not always viewed negatively by their communities (Fisher, 2012). Originating and operating primarily in Japan, boryokudan groups have expanded their criminal operations internationally over time and have a heavy presence in the economic markets of several countries. They have numerous means of acquiring revenue which include, but are not limited to prostitution, drug trafficking, corporate blackmail, gambling, and through money laundering schemes facilitated through industries such as shipping and construction (Hill, 2003b, p. 93-6). These methods of shinogi (raising funds) and others will be further explained in chapter two of this report. To fully understand the modern-day influence the yakuza have on society, this chapter will trace the emergence of the yakuza through spiritual connection made within the groups to the machi-yakko and hatamoto-yakko. It will then discuss the bakuto and tekiya as there is evidence through historical tracing which connects the yakuza to these groups from the 18th century of the Tokugawa Shogunate. For a timeline, see Table 1. This chapter will continue by following the presence of organised crime in Japanese society through significant time periods after the Tokugawa Shogunate with the Meiji Restoration period, Showa Era, and the Heisei Period, where a noticeable shift in yakuza operations can be seen. The aftermath of WWII during the Showa Era will be examined in further detail as this is the moment that operations of organised crime groups resemble the modern boryokudan as they evolve into mafia-like organisations. This era will be separated into five different periods outlined in the 1989 Ministry of Justice White Paper on Crime (Hanzai Hakusho): Period of Post War Confusion; Gang War Period; Policing Period (also known as Summit Strategy Period); Reorganisation Period; and the Reformation Period.

Table 1: Yakuza Ancestors

Tokugawa Shogunate (1603-1868)

At the start of the Tokugawa Shogunate, samurai (warriors) held a high status in society and were employed as instruments of war. When Tokugawa Ieyasu became shogun (military ruler) and united the island country of Japan in 1604 after the Warring State period (Kaplan & Dubro, 2003) and declaring a period of peace within the nation, the need for these warriors began to diminish and they were eventually stripped of their status. The high rates of unemployment for the shogun’s samurai left them with two options: assimilate into society by becoming productive citizens or roam the countryside of Japan (ibid). Those who ultimately decided to assimilate with Japanese society joined the growing merchant class where they became scholars or bureaucrats (Gragert, 1997, p. 149) Those who chose to roam the countryside became ronin, or masterless samurai (Hill, 2003b; Kaplan & Dubro, 2003). This leads to the legends of the hatamoto-yakko and the machi-yakko of the 17th century where the yakuza have identified their spiritual connection. 

Although substantial, credible evidence does not exist to support the notion that boryokudan groups evolved from these legends of unemployed samurai, it is still a significant part of yakuza history as they have claimed a spiritual connection with the Robin Hood-like individuals of the machi-yakko. The ronin who banded together during the peaceful period which characterises the Tokugawa Shogunate referred to themselves as the hatamoto-yakko or ‘servants of the shogun’ (Gragert, 1997, p. 149). This group was characterised with bizarre behaviour, abnormal ways of dressing, unbreakable loyalty, grandiose hair, emphasis on the code of the samurai (bushido), and a strong devotion to the martial arts (Gragert, 1997; Hill, 2003b; Kaplan & Dubro, 2003). This gang of masterless samurai harassed local communities and often intimidated the townspeople by carrying their sword (katana) by their side. Many would not hesitate to ‘test a new blade’ on anyone who crossed their path (Kaplan & Dubro, 2003, p. 4). Among these groups existed an unusual degree of unwavering loyalty, making a vow to support and protect one another no matter the circumstance and even against their own family members. Members of the yakuza have similar characteristics to the hatamoto-yakko such as their political affiliation, experiences with social exclusion, symbolic rituals, and most notably the intense level of loyalty within syndicates, but they do not identify with them but rather their rivals, the machi-yakko (Gragert, 1997; Kaplan & Dubro, 2003).

The machi-yakko, which directly translates to ‘servants of the town’ (Gragert, 1997, p. 149), were made up of local townspeople such as gamblers, labour workers, farmers, ronin, firemen and others who had fallen victim to the peaceful period of the Tokugawa Shogunate (Hill, 2003b). Growing tired of the violence and harassment they endured from the hatamoto-yakko, they banded together to protect one another. Within the groups existed a close-knit relationship between leaders and subordinates characterised with loyalty and devotion (Kaplan & Dubro, 1986 cited in Gragert, 1997). The purpose of this group was not to be anti-hatamoto-yakko but to be agents of mutual aid in Japanese society where townspeople could depend on one another (Ino, 1993, p. 44 cited in Hill, 2003b, p. 38). These legends stand at the core of the yakuza’s self-image and public perception as some members of Japanese society believe that organised crime has a noble history (Kaplan & Dubro, 2003, p. 4). However, there is a lack of concrete evidence to support these folktales (Gragert, 1997) and after several crackdowns from the Tokugawa government, the hatamoto-yakko and machi-yakko were completely disbanded and eradicated from Japanese society before the 18th century (Hill, 2003b; Kaplan & Dubro, 1986, p. 16 cited in Gragert, 1997, p. 150). In fact, scholars believe the true ancestors of the yakuza did not appear in society until the 18th century with the bakuto (gamblers) and the tekiya (street peddlers). This notion is further solidified by the family trees found in yakuza headquarters which link them to the original tekiya and bakuto gangs (Kaplan & Dubro, 1986, p. 18 cited in Gragert, 1997, p. 150). These categories are still used by the National Police Agency (NPA) to classify yakuza groups today with an additional category, gurentai (hoodlums), emerging following the Second World War (Hill, 2003b; Kaplan & Dubro, 2003). 

Tekiya groups started out as medicine merchants who eventually evolved into street peddlers and began banding together after experiencing oppression from the Tokugawa Shogunate as they made a vow to protect and support one another (Gragert, 1997). They operated booths at markets and had a reputation for selling defective goods and deceiving their customers through tactics such as pretending to be drunk so they would lower their guard (Kaplan & Dubro, 1986, p. 21 cited in Gragert, 1997, p. 151; Raz, 2002, p. 211). The bosses of these groups were responsible for allocating stalls around the market, charging more than what they would pay for the booths plus protection and pocketing the difference. If an individual refused to pay, they could have their merchandise broken or stolen, their customers driven away, and/or physically assaulted by a member of the tekiya (Gragert, 1997). This method of extortion is used by organised crime groups internationally and is still practiced by the yakuza today (Kaplan & Dubro, 1986, p. 34 cited in Gragert, 1997, p. 152). 

These groups participated in legitimate business practices in comparison to bakuto operations and were even granted legal status by the Tokugawa Shogunate between 1735 and 1740 (Kaplan & Dubro, 1986, p. 22 cited in Gragert, 1997, p. 152). The bosses of tekiya groups were granted with more power, were allowed a last name, and allowed to carry swords which gave them a status equivalent to samurai (Árnason, 2014, p. 8). This action was carried out by the government to prevent future violence between groups and reduce the prevalence of fraudulent activities (Kaplan & Dubro, 1986, p. 22 cited in Gragert, 1997, p. 152). However, this only fuelled the expansion of tekiya groups who started organising their own festivals and partaking in more serious criminal activities. 

The organisational structure within these gangs involves five different rankings which are still found in modern yakuza groups: boss, underboss, officers, enlisted men, and apprentices. To become a fully recognised member, new pledges would accompany the enlisted men on a tour of the country to sell the boss’s goods and upon a successful return, they were admitted into the gang as an official member (Gragert, 1997). Following the initiation, all members must obey all orders coming from their superior and adhere to the ‘Three Commandments of the Tekiya’ which are as follows (Kaplan & Dubro, 1986, p. 21 cited in Gragert, 1997, p. 152):

1. Do not touch the wife of another member. 

2. Do not reveal the secrets of the organisation to the police. 

3. Keep strict loyalty to the oyabun-kobun (father-role/child-role) relationship.

This level of loyalty to the oyabun-kobun relationship can be found among bakuto gangs as well. Historical tracing has produced evidence of bakuto groups existing as far back as the 7th century with an imperial edict from AD 689 banning gambling in Japan (Iwai, 1963 cited in Hill, p. 37). During this time, gambling was not an organised operation and was often performed in people’s houses (Siniawer, 2008). Other documents refer to the existence of organised gambling gangs in the Kamakura Period (1185-1392) of Japan, however, it is during the Tokugawa period that recognisable bakuto organisations emerge (Hill, 2003b, p. 37). As bakuto groups began establishing dens across Japan, they began to form ikka (families) consisting of fictive kinship ties based on the father-son relationship. As more of these bakuto ikka formed, they had to learn how to protect their businesses and territories from rival groups, leading to physical strength and the ability to fight becoming desirable aspects from bakuto bosses (Siniawer, 2008). 

The dens set up by bakuto groups were found alongside busy highways and were stations which attracted all sorts of travellers, giving them a place to stay and a chance to gamble. The most famous and lively highway during this time was the Tokaido highway. This highway was built in 1603 and connected Kyoto, the home of the emperor, to Tokyo, the home of the shogun (Kaplan & Dubro, 2003, p. 13). Alongside this popular highway and others like it, the bakuto saw the first use of the term ‘yakuza’. Originally used to denote items as useless, it was eventually applied to bakuto members who were viewed by society as being useless and not amounting to anything (Hill, 2003b; Kaplan & Dubro, 2003). By the turn of the 20th century, the term yakuza was eventually applied to tekiya groups and other criminal groups in Japan. These groups eventually caught the attention of merchants and artisans and those who held a higher status in society such as sumo wrestlers and samurai, leading to bakuto evolving into disciplined groups and inspiring numerous legends of ancient Japan (Kaplan & Dubro, 2003). 

These gambling groups gave the traditions of tattooing and yubitsume (finger cutting) which eventually spread to other criminal groups and characterises the yakuza today. Similar to tekiya groups, the bakuto had their own codes such as secrecy, obeying the oyabun-kobun relationship with the oyabun holding total control within the gang, and ranking orders which determined an individual’s status and duties within the group (Kaplan & Dubro, 2003). Characterised with great loyalty and cohesion, if an individual were to break these rules by being weak, disobeying orders, or revealing the secrets of the group, they could be faced with severe punishments such as having to cut off the top joint of their little finger, being banished from the family, or even death. If a gang member were to be dismissed from the group, the oyabun would notify other bakuto groups that said member was no longer welcome in their group and a general respect exists among all groups so that individual could not join another rival gang. This tradition still exists with the modern yakuza (ibid). 

The bakuto have been referred to as the core of the yakuza organisation and were originally drafted by Tokugawa government officials to swindle money out of labour workers who were employed on irrigation and construction projects for the government (Kaplan & Dubro, 1986, p. 23 cited in Gragert, 1997, p. 153). By utilising their gambling dens, bakuto groups attracted potential labourers who would gamble away their wages after work, allowing for bakuto bosses to take a cut of the profits. If an individual was not able to pay off their debt acquired from gambling, they would pay the boss back by working on labour projects (Hill, 2003b, p. 38). The relationship between the Tokugawa Shogunate and these gambling groups were symbiotic, influencing future relations between yakuza groups and the state. Although the government had issued regulations regularly throughout this period to control gambling and these groups, there was a degree of flexibility in their relationship as Tokugawa officials would often turn a blind eye to other illegal activities and event sought their cooperation in policing society (Siniawer, 2008). The bakuto proved to be a useful source for government officials as they began employing them and other criminals as informants (meakashi) who would help capture wanted criminals in exchange for release from jail and a small fee (ibid). Given that they were criminals, they would still commit crimes while completing tasks for the government as they had the network and useful connections to carry them out. As this era progressed, the Shogunate grew weak and the bakuto were able to take advantage of this, growing their organisations in areas lacking police influence. 

As bakuto groups grew increasingly physical during this period, the Tokugawa Shogunate employed them as policing mechanisms, which ultimately led to an increase in violent conflicts between different gambling groups. They were recruited by the government to fight during the civil war against the Meiji Restoration (Siniawer, 2008) during the struggle for power, which did not work in their favour as more bakuto groups began joining forces with the emerging Imperial power, aiding in the successful topple of the long reigning shogunate. One prime example of bakuto fighting for the Imperial forces would be Shimuzu Jirocho, bakuto member who became a politician during the shift in power. Leading 480 men, Jirocho took over the City of Ise and the surrounding area for the Imperial forces (Hill, 2003b). Unsurprisingly, Jirocho and his men were met with constant attacks by groups still loyal to the shogun, leading the Imperial forces looking to more bakuto groups for continued support. For his services during this time, Jirocho became an officer, guarding the highways and all previous crimes committed were pardoned. Additionally, he was granted the right to wear swords (Iwai, 1963, p. 45 cited in Hill, 2003b, p. 40; Tamura, 1981, p. 225 cited in Hill, 2003b, p. 40). Transforming into influential political forces, the bakuto would leave behind an ideological legacy and become violence specialists (Siniawer, 2008). 

Meiji Restoration Period (1868-1912)

When the 15th and final shogun of the Tokugawa period resigned, Emperor Meiji was put into power. During the Meiji Restoration era, Japan was able to break through the constraints of feudalism and transformed into an industrial power (Marika, 2015). The country saw the creation of its first parliament and political parties and the military became a strong force which would later invade China, annex Korea, and defeat Russia at war in 1905 (Kaplan & Dubro, 2003). This transition of power is often depicted by scholars as being smooth and free of violence, but this is not the case. This is due to another group of violent specialists who grew tired of their status as low-ranking samurai and the government’s response to the arrival of the West. These men, known as shishi (men of spirit), would use violent tactics to further weaken the Tokugawa government through assassinations which targeted foreigners and leaders who they believed were traitors (Siniawer, 2008). Although these violence specialists were eradicated during the Meiji Restoration period, they inspired nationalism and patriotism in future yakuza groups and are remembered for these qualities rather than for essentially being homegrown terrorists (ibid, p. 12). 

As the Meiji Imperial power began establishing stable roots, it was not long before the new administration began targeting gambling and bakuto groups. By 1884, the government had implemented the ‘Ordinance for the Treatment of Gambling Crimes’, leading to the mass arrest of gamblers (Hill, 2003b). Examinations of government relations with yakuza reveal a pattern of government officials accepting aid and employing gangsters when advantageous and when increasing police crackdowns and measures once they have achieved their desired outcome. This period of control from the Meiji government did not last long as Japan went to war with China from 1894 to 1895 and with Russia in 1905, which allowed for the revival of fortunes for these gambling groups (ibid). Progressing through the second decade of the Meiji Restoration Era, the bakuto increased their presence in the political realm as they became involved in peasant protests and rebellions. This would have been unheard of in previous years but with the creation of the Poor People’s Army (Konmingun) by bakuto members, they had increased their involvement in political matters. Taishiro Eisuke, the president and commander of those who had assembled before him, along with his second in command, Kato Orihei, led a force of members of rural society into the Chichibu District of Saitama Prefecture in November of 1884. This rebellion was sparked due to the poverty and powerlessness they had endured at the hand of lenders and the Meiji state (Siniawer, 2008). By the end of this period, the bakuto groups were not exclusively involved in gambling, but had started exercising a protective function in the entertainment, prostitution, and deconstruction industries (Iwai, 1963, p. 45-6 cited in Hill, 2003b, p. 40) evolving into a more sophisticated organisation which resembled the mafia-like enterprise seen today. 

Post War Yakuza 

Although historical lineage of yakuza gangs can be traced back to the feudal era of Japan, scholars have stated that the modern-day operations of organised crime syndicates and the power they hold derives from the aftermath of World War II (Adelstein, 2011a). Following the Second World War, Japan’s economy was in shambles, the government was in disarray, and the police held no power in society. During this period, joining organised crime gangs became the most appealing to disadvantaged and disenfranchised citizens such as soldiers, the burakumin (social outcasts), orphans, and Japanese Korean citizens who had been forced into labour work during the war (Adelstein, 2011a; Hill, 2003b). Progressing through the Showa Period, an ideal atmosphere was created for not only the criminal underworld to thrive but for the yakuza as well as they gained control of black markets, held significant power and status in society, and were a key factor in bringing Japan out of its economic recession. This is where the traditional tekiya and bakuto groups began operating like a mafia and a new classification of yakuza had emerged, the gurentai (hoodlums). By analysing the post war development of the yakuza, scholars can visualise how organised crime syndicates have evolved into the sophisticated mafia they are today. 

The post war era in Japan has been categorised into five time periods: Confusion Period (1945-1950), the Conflict Period (1951-1963), the Summit Strategy (1964-1970), the Reorganisation Period (1971-1980), and the Reformation Period (1981-1988) (Hill, 2003b, p. 42; Ministry of Justice, 1989 cited in Huang & Vaughn, 1992, p. 25). The Confusion Period following the Second World War was plagued with starvation, high rates of unemployment in the public, and lawlessness. The police had been discredited and disarmed which ultimately led to chaos in society as they could no longer enforce public order successfully. The American Allied troops who occupied Japan did not prioritise policing the criminal world and did not believe that it was their responsibility (Hill, 2003b; Huang & Vaughn, 1992). This created an ideal atmosphere for the yakuza to gain power as they took over the emerging black markets and evolving criminal underworld. 

As the black markets continued to appear across Japan, the rates of violence began to increase as well due to the development of a more violent yakuza group, the gurentai. These groups of gangsters were primarily Chinese, Taiwanese, and Korean individuals who had been brought to Japan and forced to work in labour factories (Huang & Vaughn, 1992). As they were more likely to use violence than the tekiya and bakuto, conflicts began to break out over the control of black markets which led to Japanese gangs depicting themselves as saviours of ordinary citizens against the foreign gangster (Hill, 2003b, p. 45). 

Three days after the Showa Emperor had accepted the terms outlined in the Potsdam Declaration and surrendered to the Allied Powers, a Tokyo based tekiya group known as the Kanto Ozu-gumi placed an advertisement in the newspaper informing manufacturers that as their output levels change war time to peace time, they should bring samples of their products to the gang’s headquarters where they could be purchased in bulk (Whiting, 1999, p. 7 cited in Hill, 2003b, p. 43). Just two months after the terms were accepted there were thousands of black markets (yami-ichi) developing across Japan (Solis, 2012). These developments were a driving factor in the survival of the country and their comeback from an economic recession (ibid).  

When the yami-ichi first surfaced, the bakuto did not want to be involved in its operation. However, many groups had no choice as they were either forced out of business or forced to make alliances with gurentai groups who began dominating black markets (Devos, 1973, p. 295 cited in Hill, 2003b, p. 43). Other than the threats made by these violent groups, another driving factor in the bakuto joining this operation was the government. As the government was also trying to raise funds during the post war period, they began taking over the most popular forms of gambling, which not only forced the bakuto to work with the gurentai, but also facilitated in the groups shift towards alternative means of obtaining income (Huang & Vaughn, 1992). 

These black markets provided ordinary citizens with essential goods for their survival but also gave them easy access to amphetamine, driving the rates of drug abuse to an all-time high in post war Japan (Andreas, 2020). There were three main reasons why drug use had increased during this time: it was used in World War II to boost productivity and endurance for workers and soldiers, the stigma behind stimulant use had been eliminated, and they were a useful way to suppress hunger and fatigue (Hill, 2003b; Vaughn, Huang, & Ramirez). Since the Stimulant Control Law was not passed until 1951, dealing drugs in the black market was not problematic and viewed as any other product available. Marking a dark period in post war Japan and Japanese history in general, these markets were eventually dissolved after several crackdowns. This did not mean there was an end to Japan’s stimulant abuse problem, however (Solis, 2012).  

Japan and criminal organisations faced several changes during the Conflict Period (1950-1963), which was kickstarted by the American effort in the Korean War. The economy faced two surges, the Jinmu boom from 1955 to 1956 and the Iwato Boom from 1959 to 1960 (Hill, 2003B, p. 45). With a high demand for military equipment and an increase in construction project which depended heavily on yakuza dominated industries such as shipping and docking, Japan and organised crime groups began expanding. At this point, the yakuza had reached their highest rates of membership following the Second World War with a total of 5,216 gangs and over 184,000 members scattered across Japan (Iwai, 1986 cited in Huang & Vaughn, 1992, p. 25). Industries such as gambling, prostitution, and drug trafficking were becoming successful and the number of intergang conflicts began increasing, the Diet (Japanese legislature) sprang into action, implementing the 1951 Stimulant Drugs Control Law, the 1956 Prostitution Prevention Act, and revised the 1963 Narcotics Control Law to include heroin addiction (Yokoyama, 1991 cited in Huang & Vaughn, 1992, p. 26). 

As violence between different gangs continued regarding control over the black markets, the police began cracking down and attempting to eradicate the largest criminal syndicates in Japan: the Yamaguchi-gumi, the Honda-kai (later changed to Dai Nippon Heiwa-kai), the Sumiyoshi-kai (later changed to Sumiyoshi Rengo), the Kinsei-kai (now Inagawa-kai), Nippon Kokusui-kai, Kyoto Aio-kai, and the Matsuba-kai (Hill, 2003b). The Conflict Period ended with increased policing measures with the intention of controlling the growing yakuza population. In 1958, the criminal law was altered by adding provisions against witness intimidation and increased penalties against carrying weapons such as swords and guns (ibid). This increase in policing continued into the Summit Strategy Period outlined in the 1989 Ministry of Justice White Paper on Crime. 

The Policing Period (1964-1970) is also referred to as the Summit Strategy Period and saw a shift in the public perceptions of the yakuza. This is due to the media portrayal of organised crime groups taking a negative tone and the behaviour of the gangs themselves. The Mainichi Shinbun, a major newspaper company in Japan, collaborated with the public and began putting more pressure on the government and the police to control the growing gang population (Hill, 2003b). The police began by controlling the gambling and prostitution enterprises and a public relations campaign was created to educate the public about the yakuza and their operations by placing a negative tone to the gangs by presenting them as ‘anti-Japanese’ (Huang & Vaughn, 1992). This campaign was started by the Mainichi Shinbun who incorporated strategies such as making announcements on television and newspapers to ostracise the gangs further (NPA, 1978 cited in Huang & Vaughn, 1992, p. 26).  All these tactics began impacting the recruitment strategies of criminal groups and many influential gangs saw a decline in active memberships (ibid). This ultimately led to three major syndicates dissolving, the Sumiyoshi-kai, Kanto-kai, and Kinsei-kai (Huang & Vaughn, 1992). 

The actions of the police during this time had a major impact on not only recruiting new members but on existing members as well. Not only did the police place negative labels on criminal organisations, but they also coordinated the arrests of the highest-ranking personnel and targeted illegal yakuza operations and the firearms trade (Shikita & Tsuchiya, 1992, p. 88 cited in Hill, 2003b, p. 48). Although the outcome of these policing measure was published in the NPA White Paper on Crime, scholars have pointed out that the Sumiyoshi-kai and Kinsei-kai were able to re-establish and remain in Japanese society today, questioning the effectiveness of these tactics (Ino, 1992a, p. 263 cited in Hill, 2003b, p. 48).

The Reorganisation Period (1971-1980) was characterised with yakuza expansion as the larger syndicates began dominating the criminal underworld. This was further sparked by the release of yakuza bosses and executives from prison (Hill, 2003b, p. 49) who were arrested a decade earlier in the Policing Period. As these figures were mainly a part of larger criminal organisations such as the Yamaguchi-gumi, Sumiyoshi-kai, and Inagawa-kai, they gained more power and began absorbing smaller gangs, becoming super gangs (koiki boryokudan) (ibid). Other aspects which enabled the expansion of organised crime groups was yet another economic crash resulting from the oil shock of 1973 and 1979 (Huang & Vaughn, 1992). With the growth of the economy being hindered, an ideal climate for syndicates was created to take advantage of the declining market and diversify their operations. The most notable method was the trafficking of stimulants (Yokoyama, 1991 cited in Huang & Vaughn, 1992, p. 27). As the yakuza became increasingly dependent on this market as a means of income, Japanese society faced yet another increase in drug abuse and was referred to as the beginning of a second stimulant epidemic in 1970 (Tamura, 1992, 102-3 cited in Hill, 2003b, p. 49).

Policing tactics continued well into this period as the police attempted to control traditional yakuza operations of gaining income such as gambling and extortion. As the larger organised syndicates had diversified their methods and both legitimate and illegitimate ways, they were better prepared to handle police crackdowns in comparison to the smaller syndicates who did not have the means to branch out (Hill, 2003b). The smaller syndicates continued to suffer as larger gangs created a payment method to protect the big-name bosses at the top of the power structure. This method, jonokin, allowed yakuza bosses to collect fees from their subordinates without being directly involved in criminal activity (ibid).

The themes of the Reorganisation Period progressed into the Reformation Period (1981-1988) as the larger syndicates ventured into new operations and the smaller syndicates struggled to keep up. Eventually, they were absorbed by the major gangs or were dissolved altogether (Hill, 2003b). The diversification and progress of all yakuza groups halted in 1981 when the third generation kumicho (boss) of the largest syndicate, the Yamaguchi-gumi, and his successor died. Tension between different factions within the Yamaguchi-gumi rose over who would be the next leader, resulting in the gang splitting into two rival syndicates when members were unhappy with the new leadership (Hill, 2003b; Huang & Vaughn, 1992). The original gang and the splinter groups, the Ichiwa-kai, were in a violent war for five years which negatively impacted the yakuza’s reputation in society and led to an increase of arrests during this period (Ministry of Justice, 1989; Hill, 2003b). This five-year battle will be discussed further in the following chapter with the events that led to the implementation of the Anti-Boryokudan Law. 

One obstacle the yakuza never thought they would face was a lack of new recruits. The existing members and leaders were ageing, negative perceptions of the gangs hindered their intake, and the population of younger Japanese individuals were becoming more pampered. Progressing through the Reorganisation Period, Hill (2003b) points out that the inability to attract younger members into gangs had nothing to do with money as this was when Japan was in a bubble economy. Life in these gangs was no longer glorified or needed for survival, making the once ‘noble’ yakuza being viewed as relentless (kitsui), filthy (kitanai), and dangerous (kiken) (Hill, 2003b). Gang members became heavily involved in the stock market, developing new business methods such as jiage, or land raising.  Due to the nature of the economy during the Reformation Period, they were able to take out large loans, helping with this operation where they would force owners to sell land to larger development sites (ibid). Stepping foot further into the legitimate economy, some of these gangsters started moving away from their traditional codes of honour as they began targeting ordinary citizens for their criminal activities. Traditionally, these groups lived by the saying “jago o tatsukete: kyo o kujiki” meaning “help the weak: crush the strong” (ibid, p. 52) but turning away from this code was one of the many reasons why the yakuza faced increased crackdowns and anti-organised crime laws. 

Heisei Era (1989-2019)

Until the Heisei Era, the yakuza were somewhat accepted in Japanese society. They still had their gang emblems on their office doors, held press conferences, and intimidated ordinary citizens with impunity (Adelstein, 2010). They had taken advantage of the bubble economy and began expanding their operations into the financial and corporate world. One of the most lucrative operations for these gangs during this time were conducting jiage operations for real estate developers. This racket consisted of harassing and intimidating small landowners into selling their land so larger developments could be constructed. This economy also saw the emergence of minbo operations where the yakuza would intervene in civil affairs in a violent manner through methods such as corporate blackmail, bankruptcy management, and debt collection (Hill, 2003a). Operating in the legitimate economy did not sit well with ordinary citizens and the outlook on the yakuza turned more negative. 

As the second imperial government was put into power, two major events occurred which had a profound impact on the yakuza: the collapse of the real estate and stock market bubbles in 1989-1990 and the implementation of the new anti-gang legislation in 1991 (Hill, 2003a). After the economy crashed, one would assume that the yakuza income would dry up, but this was not the case. Given that the economy in the underworld is more dynamic than that of the upperworld, the yakuza were able to exploit the economic misfortunes of other people for their own gain (ibid). After a string of bank murders resulting from collecting debt from the yakuza, the Ministry of Finance had granted banks permission to write off any loans which were deemed ‘hard to pay’. This decision resulted in 21 financial institutions dismissing over ¥20.5 trillion of their most problematic loans (Konishi, 1997 cited in Hill, 2003a). Although they lost income at the beginning of the Heisei Era due to failed businesses, the yakuza were still able to make a profit during the time as they evolved into kiezai yakuza (economic gangsters). 

The expansion of yakuza operations further into the corporate and financial realm as well as a string of intergang conflicts eventually led to the creation of a new anti-gang legislation which would have a profound impact on the yakuza. This law began targeting the traditional rackets the boryokudan groups operated, forcing them to reorganise and the initial reaction was to adapt on an internal level while employing public relations campaigns against the law (Reilly, 2014). Given the history of the yakuza and their ability to adapt and survive increases in policing, it comes as no surprise that they were able to adjust to this law. It led to further revisions and eventually, another major policing measure was passed on a nationwide level in 2011, the Prefectural Yakuza Exclusion Ordinances. This significantly impacted gang activities and as new revisions of the anti-gang law made it possible for gang bosses to be held liable for the actions of their subordinates, more organisations were moving underground. They began abandoning the traditions of finger amputation, tattooing, and sake rituals and became more secretive with their gang affiliation. Their traditions and the evolution of their income methods will be discussed in the next chapter. 

Chapter 2: The Yakuza Today

The organised crime groups which exist in society today differ significantly from yakuza members in the past. They have adjusted to Japan’s evolving society who have grown intolerant of their practices and have faced an increase in policing and legislative measures to restrict their activities. To combat this growing dissatisfaction, these criminal organisations have begun assimilating into society, trying to be inconspicuous. Most members have started covering their tattoos, wear prosthetic fingers, and many yakuza bosses have begun recruiting associate members who are difficult to identity as gang members (Shikata, 2006). Another way they have adapted is by expanding their income methods into financial crimes, the drug trade, and interfering in the lives of ordinary people. This chapter will discuss the organisational structures present in yakuza groups, the oyabun-kobun relationship, new means of acquiring income, and their recruitment tactics as well as their more traditional characteristics such as tattooing, sake ceremonies, and finger amputation. 

Members of organised crime are typically categorised into one of three classifications from their historical lineage by police organisations: bakuto, tekiya, or gurentai. No single faction is made up entirely of one classification as they join to create autonomous syndicates within the largest and most powerful gangs at the top of the power structure (Iwai, 1986, p. 215 cited in Gragert, 1997, p. 164). The social bonds created in these hierarchical systems are critical as they determine the strength and loyalty of each gang (Nakane, 1970 cited in Huang & Vaughn, 1992, p. 30). Iwai (1986 cited in Huang & Vaughn, 1992, p. 30) presents two structures found in yakuza groups, the pyramid and conglomerate/federation model. The pyramid model can be found in the two largest syndicates, the Yamaguchi-gumi and the Inagawa-kai while the third largest gang, the Sumiyoshi-kai, follows the federation framework. 

At the very top of the pyramid structure is the boss (kumicho), who manages the whole gang and oversees all members. Below the boss is a board of executives who are like little brothers (shatei/kyodai-bun) to the kumicho, acting as assistants (wakagashira-hosa) and one being appointed as the leader of the assistants (wakagashira) (Gragert, 1997). This top tier meets monthly to discuss relevant policies and distribute income among all members falling under the gang’s name (Hill, 2014; Kaplan & Dubro, 1986, p. 132 cited in Gragert, 1997, p. 165). Below this is a second tier of men consisting of an executive (kambuatsu-kai) and several younger men who command their own enlisted men (kumin) (Gragert, 1997). At the very bottom of this structure are apprentices who have not yet gained full yakuza membership status and usually accompany the kumin on their tasks. 

In a conglomerate/federation structure, power and authority over the different yakuza gangs is distributed equally among a federation of bosses.  Of this panel, one individual is elected as the president (sosai), acting as the kumicho of the gang (Gragert, 1997; Huang & Vaughn, 1992). The head of the organisation for this corporate style model does not hold as much power over the syndicates as a kumicho in a pyramid structure as individual autonomy exists between gangs (Gragert, 1997; Iwai, 1966 cited in Huang & Vaughn, 1992, p. 30; Kaplan & Dubro, 1986, p. 140 cited in Gragert, 1997, p. 165; Moorman, 2020). In both structures, all members are required to pay annual membership fees, make regular payments to their father figure, and provide gifts during New Years, funerals, and prison releases which are usually in the form of money.

There are three crucial variables which overlap all structural types in criminal organisations: an administrative hierarchy, a relationship which resembles the traditional Japanese household, and a hierarchy within internal groups (Stark, 1981, p. 62-88 cited in Hill, 2003b, p. 65). The administrative hierarchy outlines the roles and duties assigned to each tier of the power structure: boss, senior executive, executives, soldiers, and trainees. The boss (kumicho) is the figurehead of the gang who oversees business ventures of the gang and is informed regularly on its activities (ibid). The senior executive (saiko-kanbu) acts as an underboss and is a position held by the leading assistant (wakagashira). The executives (kanbu), typically the assistants (wakagashira-hosa), have the right to form their own internal criminal groups, although not many have the funds to manage such a large responsibility (Gragert, 1997; Kaplan & Dubro, 2003: Hill, 2003b). The soldiers (kumin) have duties such as secretarial work, driving superior members around, serving customers in yakuza run businesses, supervising apprentices etc. Researchers who have investigated organised crime groups have stated that the duties assigned to each member suggests that these criminal organisations are similar to bureaucratic institutions (Stark, 1981). Although evidence does not exist to fully support this assertion, a complex and parallel hierarchy exists based on traditional familial ties, the oyabun-kobun (father-son) relationship. 

Although these structural types and roles can be found in organised crime groups internationally, the yakuza differ significantly from these other organisations due to unwavering loyalty to familial ties through the oyabun-kobun relationship. This dynamic can be found in many social groups in Japan (Ishino, 1953) and dates to the 12th century during the Kamakura period with the lord and vassal system (Dore, 1958 cited in Huang & Vaughn, 1992, p. 20; Sansom, 1943 cited in Huang & Vaughn, 1992, p. 20). This relationship is crucial to loyalty, trust, and cohesion within the yakuza (Dalby, 2000, p. 40-2 cited in Hill, 2003b, p. 68) and is established through ceremonies involving sake in a ritual known as sakazuki. Pertaining specifically to the initiation of oyabun and kobun relationships, sake is poured into cups in a specific ratio which symbolises the rank of each member (Hill, 2003b). The roles outlined in the oyabun-kobun relationship mimic the traditional Japanese family roles as the leader becomes the ritual parent and his subordinates become symbolic children (Hill, 2003b: Ishino, 1953; Kaplan & Dubro, 2003). The ‘father’ supports the ‘child’ by providing protection and guidance and in return, receives absolute devotion and loyalty. This extends to the creation of new syndicates where a new ‘generation’ of ritual kinsmen are created (Ishino, 1953). For example, if an oyabun were to gain complete control of a territory, he could split the region and choose one or more of his kobun to be the head of that district. At this point, the kobun would gain their own ‘children’ and become the oyabun to them (Hill, 2003b; Ishino, 1953; Kaplan & Dubro, 2003). This leads to the final variable found in yakuza organisational structures, hierarchies within internal syndicates. 

As executives within the power structure have the authority to create smaller factions under the name of the larger gang, this creates two different statuses that a member could hold. These are duties and roles held within the family (ikka) as a whole and the status within the internal group (Hill, 2003b). Typically made up of ten individuals, yakuza experts have cited that these internal groups are far more loyal to one another as they carry out their daily operations. No matter the size of the group or whether one is looking at the different factions of a family, these self-governing entities live by five cardinal rules: do not disobey or cause a nuisance to your superior, do not betray your gang or your fellow gang members, do not fight with fellow gang members or disrupt the harmony of the gang, do not embezzle gang funds, and do not touch the woman of a fellow gang member (Hill, 2003b). 

Recruitment and Initiation 

Recruiting new, young members into the organisation is not only important on a gang level, but for members who are trying to advance within the organisation. This is especially important to executives who are trying to create their own syndicates (Hill, 2003b). It comes as no surprise that this criminal lifestyle is not for just anyone, because of this, most members come from clearly defined groups who have been cast away from Japanese society. Following Bell (1965) and Ianni’s (1974) ideas on ethnic progression, it can be applied to the yakuza and their recruitment of the burakumin and sangokujin (ethnic Chinese, Koreans, and Taiwanese – but mainly Koreans for recruitment) (cited in Hill, 2003b, p. 45). When certain minority groups are denied a legitimate means to progress through society, turning to criminality is another route taken by those who want to attain their material goals (Hill, 2003b). The burakumin hold a similar status to the ‘untouchable’ caste system in Indian society (Adelstein, 2011a) and are at the bottom of the Japanese feudal structure, facing discrimination even after the abolishment of the caste system in 1871. The sangokujin were treated unfairly during the Second World War and its aftermath, which ultimately led to the creation of gurentai groups. By playing off the discrimination these groups have faced, the yakuza use being ostracised by society to relate with them and recruit new members. 

A third of the yakuza members typically come from youth motorcycle gangs, referred to as bosozoku, and the remaining numbers come from the burakumin and ethnic Koreans who reside in Japan (Gragert, 1997, p. 147; Hill, 2014, p. 237; Kersten, 1993, p. 288). Rates on the total number of burakumin affiliated with boryokudan groups cannot be produced for two key reasons: the police do not want to be faced with allegations of discrimination (Hill, 2014) and liberation movements for the burakumin do not want public perceptions to be influenced by associations with boryokudan groups (Hill, 2003b). However, scholars have estimated that this population makes up nearly 70 percent of existing membership (Thornton & Endo, 1992, p. 140 cited in Kaplan & Dubro, 2003, p. 133; Gragert, 1997, p. 167). Discrimination is a key theme for individuals who join the yakuza. This exists among those who fail to meet the demands of the Japanese schooling system. The 1989 Police White Paper on Crime revealed that 80 per cent of the members had left school after the mandatory years or had dropped out during high school.