[4][5][6][7] Despite these promises of initial economic difficulties, the Koizumi cabinet enjoyed record popularity during its first year (reaching 90 percent in some polls), and the LDP gained several seats in the June 2001 upper house elections.

[8][9] Koizumi's popularity declined significantly in early 2002 after he sacked Tanaka for disloyalty and for feuding with bureaucrats, and a series of scandals relating to the agriculture and foreign ministries came to light.

[10][11] In response, Koizumi ordered a quickening of the pace in terms of structural reform plans and made a highly publicised visit to North Korea in the autumn to discuss abducted Japanese citizens, which led to a recovery in his poll ratings.

[12][13][14][15] The first cabinet reshuffle then took place in September 2002 and did not bring about any major personnel changes, but did remove Financial Services Minister Hakuo Yanagisawa, who Koizumi felt was too timid on economic reform.

[16] The second cabinet reshuffle took place in September 2003, following Koizumi's re-election as LDP leader by a large margin, and involved substantial changes including the promotion of the reformist Sadakazu Tanigaki to Finance Minister.