Kobe Steel Ltd., one of Japan’s top steel manufacturers, has been embroiled in a major data fraud scandal that has shaken its reputation and raised serious concerns about corporate accountability. The company, known as Kobe Steel Co., Ltd., recently admitted that senior executives were aware of the fraudulent practices involving falsified product data for over a decade. This revelation came after an independent investigation revealed that high-level managers in the copper and aluminum divisions had knowledge of the misconduct.
At a press conference, Naoto Umehara, Kobelco’s executive vice president, confirmed that three senior executives—Takumi Fujii, Nobuaki Isono, and Seiji Hirata—had been suspended from their roles due to their awareness of the fraudulent activities. Although they still hold the title of Executive Director, they have been reassigned to less critical positions within the Aluminum and Copper Affairs Department. Meanwhile, Akira Kaneko, the head of the aluminum and copper division, was not informed of the fraud by these executives, according to internal reports.
The scandal has led to a significant delay in the final report from the external legal committee, which was initially expected to be released in December but will now be completed by February next year. The company has faced growing pressure from both domestic and international regulators. Over 500 companies have been affected, spanning industries such as automotive, aerospace, defense, and energy, raising concerns about product safety and trust in Japanese manufacturing.
In response to the crisis, Kobelco’s leadership denied any systemic issues, with President Kawasaki stating that the problem was not a result of corporate culture. However, internal documents leaked by former employees revealed detailed instructions on how to manipulate data while avoiding scrutiny. The U.S. Department of Justice is also investigating Kobelco over potential violations related to products sold to American clients, while the European Aviation Safety Agency has advised airlines to avoid purchasing from the company.
As of mid-November, 437 out of 525 affected customers confirmed no safety issues with the products, though 88 cases remain unverified. No official recalls have been issued yet. The ongoing scandal has further damaged the image of Japanese manufacturing, especially following similar incidents at other major firms like Mitsubishi Materials and Toray Industries, which also faced allegations of data falsification in recent years.
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