Born in Gunma Prefecture, Obuchi graduated from Waseda University and was first elected to the National Diet in 1963, becoming one of the youngest legislators in Japanese history.

He rose through the ranks of the Liberal Democratic Party, serving as director of the Okinawa Development Agency from 1979 to 1980, chief cabinet secretary under Noboru Takeshita from 1987 to 1989, and foreign minister under Ryutaro Hashimoto from 1997 to 1998, where he distinguished himself during talks with Russia on the Kuril Islands dispute.

Obuchi became prime minister in 1998, and during his tenure tried to conclude a peace treaty with Russia to formally end World War II, and attempted to revive Japan's stagnant economy by raising public spending and lowering income taxes.

[3][4] Between January and September 1963, Obuchi travelled to thirty-eight countries, completely circumnavigating the globe and taking odd jobs as he went, as he was short on money.

When the Diet designated a new prime minister, Obuchi became only the second LDP candidate not to win the support of the House of Councillors.

During his term as prime minister, Obuchi was focused on two major issues: signing a peace treaty with Russia and reviving the Japanese economy of the Lost Decade.

His solution to the latter was to increase public spending and lowering income taxes, which briefly slowed the recession but ultimately did very little to turn it around.

On 1 April 2000, Obuchi suffered a massive stroke and slipped into a coma at Tokyo's Juntendo University Hospital while still in office.

Obuchi was a great fan of the works of the late historical novelist Ryōtarō Shiba, and a particular admirer of Sakamoto Ryōma, a key figure in the events leading to the Meiji Restoration.