Search
00
GBAF Logo
trophy
Top StoriesInterviewsBusinessFinanceBankingTechnologyInvestingTradingVideosAwardsMagazinesHeadlinesTrends

Subscribe to our newsletter

Get the latest news and updates from our team.

Global Banking & Finance Review®

Global Banking & Finance Review® - Subscribe to our newsletter

Company

    GBAF Logo
    • About Us
    • Profile
    • Privacy & Cookie Policy
    • Terms of Use
    • Contact Us
    • Advertising
    • Submit Post
    • Latest News
    • Research Reports
    • Press Release
    • Awards▾
      • About the Awards
      • Awards TimeTable
      • Submit Nominations
      • Testimonials
      • Media Room
      • Award Winners
      • FAQ
    • Magazines▾
      • Global Banking & Finance Review Magazine Issue 79
      • Global Banking & Finance Review Magazine Issue 78
      • Global Banking & Finance Review Magazine Issue 77
      • Global Banking & Finance Review Magazine Issue 76
      • Global Banking & Finance Review Magazine Issue 75
      • Global Banking & Finance Review Magazine Issue 73
      • Global Banking & Finance Review Magazine Issue 71
      • Global Banking & Finance Review Magazine Issue 70
      • Global Banking & Finance Review Magazine Issue 69
      • Global Banking & Finance Review Magazine Issue 66
    Top StoriesInterviewsBusinessFinanceBankingTechnologyInvestingTradingVideosAwardsMagazinesHeadlinesTrends

    Global Banking & Finance Review® is a leading financial portal and online magazine offering News, Analysis, Opinion, Reviews, Interviews & Videos from the world of Banking, Finance, Business, Trading, Technology, Investing, Brokerage, Foreign Exchange, Tax & Legal, Islamic Finance, Asset & Wealth Management.
    Copyright © 2010-2026 GBAF Publications Ltd - All Rights Reserved. | Sitemap | Tags | Developed By eCorpIT

    Editorial & Advertiser disclosure

    Global Banking & Finance Review® is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

    Home > Headlines > Explainer-How will Japan pick its next leader?
    Headlines

    Explainer-How will Japan pick its next leader?

    Published by Global Banking & Finance Review®

    Posted on September 7, 2025

    3 min read

    Last updated: January 22, 2026

    Explainer-How will Japan pick its next leader? - Headlines news and analysis from Global Banking & Finance Review
    Why waste money on news and opinion when you can access them for free?

    Take advantage of our newsletter subscription and stay informed on the go!

    Subscribe

    Tags:AppointmentPresidentGovernment fundingpolitical risk insurancefinancial markets

    Quick Summary

    Japan's leadership transition begins as PM Ishiba resigns. The LDP must elect a new leader, with a complex voting process ahead.

    Japan's Leadership Transition: Who Will Succeed Prime Minister Ishiba?

    TOKYO (Reuters) -With Japanese Prime Minister Shigeru Ishiba about to resign, according to a source close to the premier, attention turns to who will next steer the world's fourth-largest economy.

    The process to pick Japan's next leader is more complicated than before as Ishiba's Liberal Democratic Party, which has ruled Japan for most of the post-war period, and its junior coalition partner lost their majorities in both houses of parliament during his tenure.

    PARTY LEADERSHIP RACE

    First, the LDP must pick a new president to replace Ishiba.

    In the last party leadership race in September 2024, candidates needed to secure 20 nominations from the party's lawmakers to be eligible to run.

    Candidates will embark on a period of debates and campaigns across Japan culminating in a vote by lawmakers and rank-and-file party members. In the last race, there were nine contenders, and Ishiba won in a run-off.

    LDP VOTE

    Based on the last leadership race, each lawmaker has a vote with an equal number distributed among the rank-and-file members in the first round of voting.

    A candidate securing a simple majority in that poll becomes party leader. If no one secures a majority, a run-off vote follows between the two candidates with the most votes.

    In the second round, each lawmaker again gets one vote, but the share of the rank-and-file drops to 47 votes, one for each of Japan's prefectures.

    In the unlikely event of a tie, the winner will be decided by lot. That has never happened in a leadership contest, but was used in 2010 to decide who would chair the LDP's upper house caucus.

    PARLIAMENT VOTES

    Since the party does not have a majority in either house, it is not guaranteed that the LDP president will become prime minister.

    In 1994, the LDP formed a three-way alliance with its arch rival, the Japan Socialist Party and a smaller startup party to regain power, having socialist leader Tomiichi Murayama elected as prime minister.

    Based on historical precedent, the more-powerful lower house will first vote on their choice for prime minister. Lawmakers can nominate any candidates from the chamber, and historically the leaders of opposition parties have been put forward for the vote.

    Any candidate who secures a simple majority in the first round wins approval. If no one secures a majority, a run-off poll follows, between the two candidates with the most votes.

    Voting then passes to the upper house, where a similar process begins, although only members of the lower house are eligible to be prime minister.

    If there is a disagreement between the houses, the choice of the lower house prevails. This happened in 2008 when the lower house chose the LDP candidate and the upper house picked an opposition candidate.

    The new prime minister may also call a snap general election to seek a national mandate.

    (Reporting by John Geddie and Tim Kelly; Editing by William Mallard)

    Key Takeaways

    • •Prime Minister Ishiba is set to resign, prompting a leadership race.
    • •The LDP must select a new president to replace Ishiba.
    • •The LDP's loss of majority complicates the leadership transition.
    • •The lower house's choice prevails in case of disagreement with the upper house.
    • •A snap general election may be called by the new prime minister.

    Frequently Asked Questions about Explainer-How will Japan pick its next leader?

    1What is the process for selecting Japan's next leader?

    The process involves the Liberal Democratic Party selecting a new president, followed by a parliamentary vote. The LDP president must secure a majority in both houses to become prime minister.

    2How does the LDP leadership vote work?

    In the LDP vote, each lawmaker has a vote, and rank-and-file members also participate. A candidate needs a simple majority to win; if not achieved, a run-off occurs between the top two candidates.

    3What happens if the LDP president does not have a majority in parliament?

    If the LDP does not hold a majority in either house, the party president may not automatically become prime minister. Historical alliances may be formed to secure the position.

    4Can the new prime minister call for a snap election?

    Yes, the new prime minister may call a snap general election to seek a national mandate, as is a common practice in Japanese politics.

    5What was the historical precedent for LDP leadership elections?

    Historically, if no candidate secures a majority in the first round, a run-off occurs. The lower house's choice prevails in case of disagreements between the houses.

    More from Headlines

    Explore more articles in the Headlines category

    Image for Two suspects in attempted killing of Russian general 'will soon be interrogated', Kommersant newspaper cites source
    Two suspects in attempted killing of Russian general 'will soon be interrogated', Kommersant newspaper cites source
    Image for Russia launches massive attack on Ukraine's energy system, Zelenskiy says
    Russia launches massive attack on Ukraine's energy system, Zelenskiy says
    Image for Ukraine backs Pope's call for Olympic truce in war with Russia
    Ukraine backs Pope's call for Olympic truce in war with Russia
    Image for Russia launched 400 drones, 40 missiles to hit Ukraine's energy sector, Zelenskiy says
    Russia launched 400 drones, 40 missiles to hit Ukraine's energy sector, Zelenskiy says
    Image for The Kyiv family, with its pets and pigs, defying Russia and the cold
    The Kyiv family, with its pets and pigs, defying Russia and the cold
    Image for Not Italy's Devil's Island: Sardinia bristles at mafia inmate plan
    Not Italy's Devil's Island: Sardinia bristles at mafia inmate plan
    Image for Two Polish airports reopen after NATO jets activated over Russian strikes on Ukraine
    Two Polish airports reopen after NATO jets activated over Russian strikes on Ukraine
    Image for Exclusive-US plans initial payment towards billions owed to UN-envoy Waltz
    Exclusive-US plans initial payment towards billions owed to UN-envoy Waltz
    Image for Trump says good talks ongoing on Ukraine
    Trump says good talks ongoing on Ukraine
    Image for France to rally aid for Lebanon as it warns truce gains remain fragile
    France to rally aid for Lebanon as it warns truce gains remain fragile
    Image for Exclusive-US aims for March peace deal in Ukraine, quick elections, sources say
    Exclusive-US aims for March peace deal in Ukraine, quick elections, sources say
    Image for Ukraine's Zelenskiy calls for faster action on air defence, repairs to grid
    Ukraine's Zelenskiy calls for faster action on air defence, repairs to grid
    View All Headlines Posts
    Previous Headlines PostJapan PM Ishiba resigns after bruising election losses
    Next Headlines PostUN says time is short to stop famine spreading as Israel bombards Gaza City