This essay describes the reform of Japan's national universities resulting from the enactment of the National University Corporations Law (Kokuritsu Daigaku Hōjin-hō) in April 2003, which aimed at converting all the national universities into corporate entities (kokuritsu daigaku hōjin).The intention of this law is to effect major changes in the heretofore self-governing structure of national universities and to introduce a management system based on the corporate organization style.The National University Corporations Law will lead to a major transformation of universities from sites of research and education grounded in traditional basic research into corporate-like organizations which respond sensitively to social and market needs and which provide more practical research and education services. However, the increased power of the Ministry of Education resulting from incorporation may also limit the academic freedom and autonomy of Japan's national universities.