Prime Minister Fumio Kishida is concluding his term amid declining public support and a backdrop of recent corruption scandals within the Liberal Democratic Party (LDP).

In Japan's parliamentary system, the leader of the ruling party is appointed as prime minister, with internal elections scheduled every three years; the next election is set for September.

Kishida has called for the LDP to present a renewed image, emphasizing the need for a 'reborn' party to regain public trust.

The next leader will inherit significant challenges, including rising living costs, geopolitical tensions, and the need to unify the party.

Kishida's recent policies have raised concerns in the market due to inconsistent objectives and unclear directions, further complicating the political landscape.

The LDP is currently embroiled in a political funding scandal involving unreported political funds linked to party events, which has intensified scrutiny on the party.

Shigeru Ishiba, a former defense minister and four-time candidate for party president, is currently leading in public opinion polls but faces challenges in securing support from LDP lawmakers.

Toshimitsu Motegi, the current LDP Secretary-General, is viewed as a strong candidate for the leadership role due to his extensive experience and negotiation skills.

Kishida's administration saw a significant increase in Japan's defense budget, aiming to enhance military capabilities amid rising regional tensions.

Throughout his tenure, Kishida faced various challenges, including the COVID-19 pandemic and economic issues, which contributed to his administration's declining approval ratings.

In an effort to address inflation, Kishida announced a stimulus package aimed at alleviating the financial pressures faced by Japanese families.

This announcement about Kishida's departure is breaking news, and further updates on the political situation in Japan are anticipated.