March 16: The Shimane Prefecture assembly declares "Takeshima Day" to commemorate the centennial anniversary of Japan's claim to Liancourt Rocks (known as Takeshima in Japan, and Dokdo in Korea), starting a wave of protests in South Korea.
August 8: Postal service privatization, the keystone of Prime Minister Koizumi's platform, is voted down in the House of Councillors. Later in the day, Koizumi announces the dissolution of the House of Representatives and snap elections to be held the following month.
October 14: The Postal Privatization Bill enters the Diet.
October 31: Koizumi reshuffles his cabinet, naming Shinzo Abe as Chief Cabinet Secretary, Heizo Takenaka as Minister of Internal Affairs and Taro Aso as Minister of Foreign Affairs.