The landscape of Japan's education sector has seen a significant change as the number of tuition academies ("Juku") filing for bankruptcy hit a 25-year high, amassing 46 cases in 2021. The COVID-19 pandemic, with its widespread closure of physical institutions, significantly contributed to the financial strain, despite efforts to transition to online learning. The rise in bankruptcy cases signals issues about the affordability and sustainability of the tuition academy business model.

Education in Japan is considered essential for success, and tuition academies play a critical role in supplementary education. These academies are generally small-scale businesses that have held a crucial place in preparing students for entrance exams. They are an intrinsic part of the Japanese education system, and their increased bankruptcy rates are alarming parents and students alike.

In the US or EU, private tutoring centers also exist but are not as ubiquitous or as ingrained in the education culture as in Japan. The increased bankruptcy rates among Japanese tutoring acadically highlight without government financial assistance, these smaller institutions might struggle despite being vital to the education system.