Counsel in command

The role of Japanese in-house lawyers has undergone a remarkable shift in recent times, says Hideyuki Sakamoto, the president of the Japan In-House Lawyers Association (JILA)

In-house counsel in Japan are no longer restricted to providing routine legal advice, but have become pivotal in expanding and growing Japanese companies overseas. Asia Business Law Journal discusses this phenomenon with Hideyuki Sakamoto, president of the JILA and chief legal officer at Gibraltar Life Insurance in Tokyo.

As we discover, with the intense market competition that has driven Japanese companies to adapt in recent times, the role of in-house lawyers is more crucial now than ever before.

Asia Business Law Journal: How has the role of in-house lawyers in Japan changed in the past few years?

Hideyuki Sakamoto: There has been a change in the role of in-house lawyers in Japan. With the globalisation of businesses and the increasing complexity of legal and regulatory frameworks, in-house lawyers in Japan have taken on more strategic responsibility within their organisations, and are involved in business decisions.

They have also expanded their work areas to areas other than legal departments, such as compliance, risk management, corporate planning and intellectual property departments. Additionally, they are actively tackling emerging issues such as environmental, social and governance (ESG), economic security and cybersecurity because of the heightened need for support for these areas. Furthermore, as legal tech services evolve drastically, more in-house lawyers are using them.

Traditionally, in-house lawyers have been focusing on the protection of the company from legal risks, as a guardian. But nowadays they’re expected to be involved in risk-taking and strategic decisions as a partner. They are assessing legal risks, coming up with solutions and helping management to take legal risks to achieve business goals. That’s the crucial part of the in-house lawyer’s role.

ABLJ: What are some current trends facing in-house lawyers in Japan, and how do in-house counsel stay up to speed on global legal trends and incorporate them into their work?

Sakamoto: The current trends facing in-house lawyers in Japan include enhanced regulations, the globalisation of businesses, technology advancements, and the need for enhanced risk management.

To stay current on global legal trends and incorporate them into their work, in-house lawyers in Japan adopt several strategies. They actively engage in research and read publications to stay informed about legal developments worldwide. They also collaborate with external counsel to understand the implications of international laws and regulations on their organisations. And they attend seminars to acquire new knowledge. To support these efforts, the JILA holds seminars given by experts who are familiar with international regulatory trends.