The history of the yakuza is murky. There are two major types: tekiya, who are essentially street merchants and small-time con artists, and bakuto, originally gamblers but now including loan sharks, protection money collectors, pimps, and corporate raiders. Almost half of the yakuza are Korean-Japanese, many of them the children of Koreans brought over as forced labor during Japan’s colonial period. Another large faction is made up of dowa, the former untouchable caste of Japan that handled butchering animals, making leather goods, and doing other “unclean” jobs. Even though the caste system is gone, racism toward dowa remains.
There are twenty-two officially recognized yakuza groups in Japan. The big three are the Sumiyoshi-kai, with 12,000 members; the Inagawa-kai, with 10,000 members; and at the top the Yamaguchi-gumi. There are 40,000 members of the Yamaguchi-gumi and more than a hundred subgroups. Each group is required to pay monthly dues, which are funneled to the top of the organization. In essence, every month the Yamaguchi-gumi headquarters takes in (at a conservative estimate) more than $50 million in private equity. The Yamaguchi-gumi originally began as a loose labor union of dockworkers in Kobe. It began to branch out into industry in the chaos following the Second World War. Japan’s National Police Agency estimates that, including the Yamaguchi-gumi, there are 86,000 gangsters in the country’s crime syndicates, many times the strength of the U.S. Mafia at its violent peak.
The yakuza are structured as a neofamily. New recruits pledge their loyalties to the father figure known as the oyabun. Ties are forged through ritual sake exchanges, creating brotherhoods, and those who are in the business world are allowed to become
kigyoshatei, or corporate brothers. Each organization is usually a pyramid structure.
The modern-day yakuza are innovative entrepreneurs; rather than a bunch of tattooed nine-fingered thugs in white suits wielding samurai swords, a more appropriate metaphor would be “Goldman Sachs with guns.” A 2007 National Police Agency white paper warned that the yakuza have moved into securities trading and infected hundreds of Japan’s listed companies, a “disease that will shake the foundations of the economy.” According to “An Overview of Japanese Police,” an English document by the National Police Agency distributed to foreign police agencies in August 2008, “Boryokudan (yakuza) groups pose an enormous threat to civil affairs and corporate transactions. They are also committing a variety of crime to raise funds by invading the legitimate business community and pretending to be engaged in legitimate business deals. They do this either through companies, etc. which they are involved in managing or in cooperation with other companies.”
The yakuza have long occupied an ambiguous position in Japan. Like their Italian cousins, they have deep if murky historical links with the county’s ruling party, in Japan’s case the Liberal Democratic Party (LDP). Robert Whiting, the author of Tokyo Underworld, and other experts point out that the LDP was actually founded with yakuza money. It’s such an open secret that you can buy comic books at 7-Eleven discussing how this happened. Prime Minister Koizumi Junichiro’s grandfather was a member of the Inagawa-kai crime group and heavily tattooed. He served as a cabinet minister and was referred to by his constituents as Irezumidaijin—“the tattooed minister.” In the past the yakuza’s reputation for keeping disputes between themselves and not harming the families of other mobsters, or “noncombatants,” protected them from the ire of citizens and the attentions of the police. They were considered a “necessary evil” and a “second police force” that kept the streets of Japan safe from muggers and common thieves. Yet they were still considered outlaws.
**
Yamaguchi-gumi has a high-walled central compound in one of the wealthiest parts of Kobe. They own land, and are impossible to drive out. Of course, that’s because the yakuza are recognized as legal entities in Japan. They have the same rights as any corporate entity, and their members have the same rights as ordinary citizens. They are fraternal organizations—like the Rotary Club. Even in cases where they do not own the property where they have set up their offices and are simply renters, they are almost impossible to remove. The Nagoya Lawyers’ Association advises that many businesses and landlords should insert an “organized crime exclusionary clause” into any contract drawn up, to make it easier to sever ties with yakuza tenants or businesses when the time comes. Nagoya is the home of the Yamaguchi-gumi’s leading faction, the Kodo-kai, which has roughly four thousand members.
Problems with organized crime in Nagoya are so extensive that in 2001, the lawyer’s association issued a manual of sorts entitled Organized Crime Front Companies: What They Are and How to Deal with Them. There are lawyers who specialize in dealing with yakuza.
**
Major gang bosses are well-known celebrities. Bosses from the Sumiyoshi-kai and the Inagawa-kai grant interviews to print publications and television. Politicians are seen having dinner with them. They own talent agencies that the general public knows are yakuza front companies—such as Burning Productions—but that does not stop major Japanese media outlets from working with them. There are fan magazines, comic books, and movies that glamorize the yakuza, who have metastasized into society and operate in plain view in a way unthinkable to American or European observers.
As the yakuza continue to evolve and get into more sophisticated crimes, the police have had a tough time keeping up. The so-called marubo cops (organized crime control detectives) are used to dealing with simple cases of extortion and intimidation, not massive stock manipulation or complicated fraud schemes.
The Yamaguchi-gumi have been notoriously uncooperative since Shinobu Tsukasa took power in 2005. The police used to be able to play the various organizations against one another to extract information—the Yamaguchi-gumi would rat on the Sumiyoshi-kai, the Sumiyoshi-kai on the Yamaguchi-gumi, and so on. But now the Yamaguchi-gumi is increasingly the only player in town and it has no reason to cooperate. In fact, the Aichi police, when raiding a Kodo-kai office in 2007, were horrified to discover that the faces, family photos, and addresses of the detectives working organized crime were posted on the walls of the yakuza headquarters. The names of all the organized crime detectives of another major police agency in Japan were leaked onto the Internet last year. The yakuza, especially the Yamaguchi-gumi, are not only not afraid of the police anymore, they are saying, essentially, “We know who you are, we know where you live, so be careful.”
A detective from the Osaka Prefectural Police Department concurs. “Since the anti–organized crime laws went on the books in 1992, the numbers of the yakuza have changed very little—hovering around eighty thousand—for sixteen years. They have more money and more power than they ever had before, and the consolidation of the Yamaguchi-gumi has made it a huge force to be reckoned with. In many ways, the Yamaguchi-gumi is the LDP of organized crime, operating on the principal that ‘Power is in numbers.’ It has capital, it has manpower, it has an information network that rivals anything the police have, and it is expanding into every industry where money is to be made.”
In the old days, the yakuza left the general population alone. But that was a long time ago. No one is off limits anymore, not even journalists—or their children.