The government boosted subsidies to the Institute of Technologists by 2 billion yen after Liberal Democratic Party policy chief Shizuka Kamei demanded the increase, sources said Thursday.
The institute is the pet project of Tadao Koseki, the founder of KSD.
President Kamei made the demand after Masakuni Murakami, a former LDP power broker suspected of taking bribes from promoters of the institute project, instigated it, the sources familiar with the case said.