The nation experienced a series of events that considerably changed the political scene in 1998, including the resignation of a prime minister.

The year started with the official dissolution of Shinshinto, which was formed by Ichiro Ozawa three years before as a grouping of nine opposition forces to counter the political might of the ruling Liberal Democratic Party.

On Jan. 1, six parties were born from the ashes of Shinshinto, including the Liberal Party, led by Ozawa; Shinto Heiwa (New Peace Party), formed by Lower House members backed by Soka Gakkai, the nation's largest lay Buddhist Organization; Shinto Yuai (Amity Party), formed by former members of the now-defunct Democratic Socialist Party; and Kokumin no Koe (Voice of the People), led by Lower House member Michihiko Kano. These small parties and other non-Communist opposition forces then tried to gather together in an attempt to retain their influence.