This article focuses on the "incorporation" policy of national universities in Japan. The idea of turning national universities into corporations was first conceived in 1997, and the Law of National University Incorporation was established in 2003. The policy was then implemented in 2004. This article: (1) describes the nature of Japanese national university corporations; (2) introduces the process by which the incorporation law was established; (3) discusses the problems of turning national universities into corporations; and (4) probes the trend toward incorporation of national universities in Japan. Implications for the future incorporation of national universities in Taiwan are suggested.