Two major corporate compliance failures have emerged in Japan this week, raising serious questions about governance standards at some of the country's largest companies. The scandals involve telecommunications giant KDDI and postal service operator Japan Post, both household names that millions of foreign residents interact with regularly. According to NHK, KDDI announced on February 6th that its advertising subsidiary engaged in repeated fraudulent transactions, with approximately 33 billion yen flowing to external parties. The scale of the accounting irregularities is staggering: cumulative revenue overstatements may total 246 billion yen across fiscal years 2017 through 2025. The fraudulent activity centered on the company's advertising agency operations, where fictitious transactions were systematically recorded over nearly a decade. KDDI has established a special investigation committee to examine the matter, with findings expected by the end of March 2026. The investigation will focus on determining where the 33 billion yen went and what motivated individuals to orchestrate such extensive fraud. The 246 billion yen in overstated sales represents cumulative accounting manipulation, with approximately 33 billion yen paid out as "commission fees" to external parties. For expats living in Japan, this scandal carries practical implications beyond headline news. KDDI operates au, one of Japan's three major mobile carriers, along with numerous internet and telecommunications services that foreign residents rely on daily. While the fraud occurred at a subsidiary rather than the core telecommunications business, the revelation raises questions about corporate oversight and internal controls at a company managing critical infrastructure and customer data. The timing is particularly sensitive as Japan has worked to strengthen corporate governance standards following previous scandals. The decade-long duration of the fraudulent activity suggests systematic failures in auditing and compliance mechanisms that should concern customers and investors alike. Meanwhile, Japan Post faces its own regulatory troubles. The Fair Trade Commission has launched an investigation into Japan Post for suspected violations of freelance protection laws, according to NHK reporting on February 6th. The investigation centers on Japan Post's failure to clearly specify transaction conditions when outsourcing work to contractors, a legal requirement designed to protect freelance workers. This investigation affects foreign residents working as independent contractors or considering freelance opportunities in Japan. The freelance protection law mandates that companies clearly communicate terms and conditions when commissioning work from independent contractors. Japan Post's alleged failure to comply with these requirements represents a significant breach, particularly given its status as a quasi-governmental organization. For expats working as freelancers in Japan, this case highlights the importance of understanding your legal protections. Japanese law requires clients to provide written documentation of work terms, payment schedules, and other essential conditions. If companies as prominent as Japan Post can face investigation for non-compliance, smaller businesses may also be falling short of legal requirements. The Fair Trade Commission's willingness to investigate a major postal operator demonstrates increased regulatory scrutiny of freelance working conditions. Foreign residents should ensure their own contracts meet legal standards and report violations to appropriate authorities. Both cases reflect broader governance challenges in Japanese corporate culture, where hierarchical structures and reluctance to challenge superiors can enable misconduct. For expats, these scandals serve as reminders to remain vigilant about service providers' business practices and to understand legal protections available in employment and contracting relationships. As investigations proceed, foreign residents should monitor developments, particularly if they are KDDI customers or work with Japan Post as contractors. The outcomes may influence regulatory reforms affecting consumer protections and freelance worker rights across Japan's business landscape.