The 67-year-old veteran of the LDP is expected to resign as Prime Minister after the party selects a new leader in September.
Support for Mr. Kishida, who has held the position since 2021, has declined following a corruption scandal involving his party, rising living costs, and a weakening yen.
Last month, his approval ratings dropped to 15.5%—the lowest for a Prime Minister in over a decade.
During a Wednesday press conference announcing his decision, Mr. Kishida stated, “In the upcoming presidential election, it’s crucial to demonstrate to the public that the Liberal Democratic Party is committed to change. A transparent and open election, along with free and open debate, is vital. The first clear step to indicate that the LDP is changing is for me to step aside.”
Within the party, there have been doubts about whether Mr. Kishida could lead the LDP to victory in the next general election, scheduled for 2025. The party has held power almost continuously since 1955.
Nevertheless, LDP leaders were surprised by Mr. Kishida’s announcement.
A senior leader told NHK that he had attempted to convince Mr. Kishida to seek re-election, but the Prime Minister responded that doing so would be “irresponsible.”
A member of Mr. Kishida’s faction described the decision as “very regrettable and unfortunate,” noting that although the Prime Minister had a strong record in foreign policy, defense policy, and domestic politics, he was compelled to step down due to issues related to politics and money.
Analysts have told the BBC that Japan is experiencing a “once-in-a-generation” political crisis as the ruling party struggles to restore its image.
Last December, four LDP cabinet ministers resigned within a fortnight over a fundraising scandal involving the ruling party’s most powerful faction.
Five senior vice-ministers and a parliamentary vice-minister from the same faction, formerly led by the late PM Shinzo Abe, also quit.
Japan’s prosecutors launched a criminal investigation into whether dozens of LDP lawmakers received proceeds from fundraising events that saw millions of dollars kept off official party records.
However Mr Kishida’s handling of the fundraising scandal drew public criticism, which made him more unpopular.
The controversy also unfolded as Japanese households struggled with food prices soaring at the fastest rate in almost half a century.
The combination of economic woes and political scandal fuelled mistrust in the ruling party, despite a weak and divided opposition.
“From now on, the entire political situation will be in flux,” Jun Azumi, an MP from the main opposition Constitutional Democratic Party told NHK, after Mr Kishida’s announcement.
Mr Kishida comes from a family of politicians – both his father and grandfather were members of Japan’s House of Representatives.
He was first elected to the House in 1993. He went on to become Japan’s longest-serving foreign minister when he held the post between 2012 and 2017.
He took over as PM in October 2021, succeeding Yoshihide Suga who resigned after just one year in office. He led the LDP to victory shortly after the 2021 general election.
In the last three years, Mr Kishida’s government pushed for policies to lift wages and household incomes amid a cost-of-living crunch.
He oversaw Japan’s reopening after the Covid-19 pandemic and was in office when the country experienced one of its most shocking political moments – the assassination of former PM Shinzo Abe in July 2022. He also made the controversial decision to honor the slain leader with a state funeral.
Even though he struggled domestically, Mr Kishida regularly made headlines for his diplomacy.
Japan has long been a key US ally in a fraught Indo-Pacific where it faces an assertive China and a nuclear-armed North Korea. And Mr Kishida has been successful in expanding the country’s military budget and taking cautious steps away from its post-war pacifist ideals.
Defense cooperation with Washington has deepened under his government, and he also mended relations with South Korea, receiving President Yoon Suk Yeol in Tokyo on a historic visit.
In another unprecedented move, Japan, the US, and South Korea issued a joint statement at a Camp David summit last August, calling for expanding cooperation among them.
