Tokyo has established itself as an economic hub, attracting both domestic and international companies and financial institutions. This concentration of businesses and opportunities contributes significantly to economic development. However, it has also become a factor in widening regional economic disparities. The centralization of capital functions in Tokyo has various impacts on Japanese society and the economy. The concentration of capital functions in Tokyo attracts a large population, leading to increased population density in urban areas and exacerbating housing shortages. The demand for housing surpasses the supply, resulting in soaring housing prices and intense competition in the rental market. The centralization of capital functions contributes to traffic congestion, posing an environmental burden. Particularly, daily traffic jams and crowded public transportation in the city center affect the convenience and comfort of daily life. In addition, I believe that the concentration of administrative functions and critical infrastructure in the Tokyo metropolitan area could have significant adverse effects in the event of natural disasters. This centralization may create vulnerabilities to disasters and other risks. Dispersion of functions to regional areas could enhance disaster preparedness and risk mitigation effectively. The concentration of capital functions in Tokyo presents various challenges. To address these issues, policies promoting regional development and a decentralized economic approach are essential for achieving social balance.