The Liberal Democratic Party (LDP) and its junior partner Komeito secured 215 seats, fewer than the 233 seats required for a majority in the 465-seat House of Representatives in Sunday's election, according to the national broadcaster NHK.
"We were far from gaining the public's understanding," Ishiba said at a press conference, acknowledging the impact of the slush funds scandal that has plagued his party since late 2023.
The main opposition Constitutional Democratic Party of Japan (CDPJ) made significant gains, winning more than 140 seats, up from 98, while the Democratic Party for the People saw its representation increase more than fourfold from seven seats.
Voter turnout was about 54 percent, among the lowest in post-war Japan, according to Kyodo News, while the election produced a record 55 female lawmakers in the lower chamber.
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