The was an insider trading

Insider trading

Insider trading is the trading of a corporation's stock or other securities by individuals with potential access to non-public information about the company...

 and corruption

Political corruption

Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...

 scandal that forced many prominent Japan

Japan

Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

ese politicians to resign in 1988.

Recruit is a human resources and classifieds company based in Tokyo

Tokyo

, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...

. Its chairman, Hiromasa Ezoe, offered a number of shares in a Recruit subsidiary, Cosmos, to business leaders and senior politicians shortly before Cosmos went public in 1986. Following the public offering, Cosmos's share price skyrocketed, and the individuals involved in the scheme saw average profits of ¥66 million each.

Although only seventeen members of the Diet

Diet of Japan

The is Japan's bicameral legislature. It is composed of a lower house, called the House of Representatives, and an upper house, called the House of Councillors. Both houses of the Diet are directly elected under a parallel voting system. In addition to passing laws, the Diet is formally...

 were involved in the insider trading, another thirty were later found to have received special favors from Recruit.

Among the politicians involved in the scandal were Prime Minister Noboru Takeshita

Noboru Takeshita

was a Japanese politician and the 74th Prime Minister of Japan from November 6, 1987 to June 3, 1989.Takeshita was also the last Prime Minister during the long rule of the Emperor Shōwa.-Early years:...

, former Prime Minister Yasuhiro Nakasone

Yasuhiro Nakasone

is a Japanese politician who served as Prime Minister of Japan from November 27, 1982 to November 6, 1987. A contemporary of Brian Mulroney, Ronald Reagan, Helmut Kohl, François Mitterrand, Margaret Thatcher, and Mikhail Gorbachev, he is best known for pushing through the privatization of...

, and Chief Cabinet Secretary Takao Fujinami

Takao Fujinami

was a Japanese politician, former Chief Cabinet Secretary and House of Representatives member.Born in Ise, Mie Prefecture, Fujinami was first elected to the House of Representatives in 1967 as a Liberal Democratic Party member, and was elected to the House of Representatives eleven times.Fujinami...

. In addition to members of the LDP government, leaders of the Komeito, Democratic Party of Japan

Democratic Party of Japan

The is a political party in Japan founded in 1998 by the merger of several opposition parties. Its socially liberal platform is generally considered center-left in the Japanese political spectrum...

, and Japan Socialist Party were also found to be involved. As a result, Takeshita's cabinet was forced to resign, although some of its members returned to political prominence later (including future prime ministers Kiichi Miyazawa

Kiichi Miyazawa

was a Japanese politician and the 78th Prime Minister from November 5, 1991 to August 9, 1993.-Early life and career:Miyazawa was born in Fukuyama, Hiroshima Prefecture, and graduated from Tokyo Imperial University with a degree in law. In 1942 he joined the Ministry of Finance...

 and Keizo Obuchi

Keizo Obuchi

was a Japanese politician who served in the House of Representatives for twelve terms, and ultimately as the 84th Prime Minister of Japan from July 30, 1998 to April 5, 2000. His political career ended when he suffered a serious and ultimately fatal stroke....

).

The chairmen of NTT

Nippon Telegraph and Telephone

, commonly known as NTT, is a Japanese telecommunications company headquartered in Tokyo, Japan. Ranked the 31st in Fortune Global 500, NTT is the largest telecommunications company in Asia, and the second-largest in the world in terms of revenue....

, the Yomiuri Shimbun

Yomiuri Shimbun

The is a Japanese newspaper published in Tokyo, Osaka, Fukuoka, and other major Japanese cities. It is one of the five national newspapers in Japan; the other four are the Asahi Shimbun, the Mainichi Shimbun, Nihon Keizai Shimbun, and the Sankei Shimbun...

, and the Nihon Keizai Shimbun

Nihon Keizai Shimbun

is one of the largest media corporations in Japan. Nikkei specializes in publishing financial, business and industry news. Its main news publications include:* Nihon Keizai Shimbun , a leading economic newspaper....

 were also involved in the scandal.

Despite the breadth of the Recruit Scandal across party lines, the LDP was hurt most significantly by the scandal. It is often said to be one of the main causes of Morihiro Hosokawa

Morihiro Hosokawa

is a Japanese politician who was the 79th Prime Minister of Japan from August 9, 1993 to April 28, 1994. His coalition was the first non-Liberal Democratic Party government since 1955.- Early life :...

's opposition party victory in 1993, which briefly interrupted the LDP's otherwise continuous reign over Japan.