Kobe Steel scandal may widen as group has over 6,000 partners

October 17, 2017

Kobe Steel Ltd.'s data fraud scandal may ensnare more companies as the group does business with 6,123 companies in Japan, according to a Teikoku Databank Ltd. survey released Monday.

On Friday, Kobe Steel said its falsely certified products are believed to have been shipped to about 500 clients, while the company is continuing an investigation on the matter.

According to the survey, 3,430, or 56.0 pct, of the group's business partners are small firms whose annual sales are less than one billion yen.

Meanwhile, 1,146 partners, or 18.7 pct, are located in Osaka Prefecture, and 997, or 16.3 pct, in Hyogo Prefecture, where Kobe Steel has its headquarters.

"As many partners are small companies, it'll be difficult to verify the safety of affected end products," said a Teikoku Databank official, adding that the scandal could have significant implications for some partners.

The private credit research agency used its own database covering some 1.47 million companies to identify companies that do business with Kobe Steel. Jiji Press