saying sorry. the president of olympus comes clean about how the company tried to cover up huge investment losses. japan's securities watchdog is going to investigate the optical equipment manufacturer. coming to you from our studios in tokyo, this is "newsline," i'm james tengan. the evidence was too damning. the pressure, too great. the leaders of olympus admitted on tuesday the company used massive payments connected with corporate buyouts to hide investment losses.

the issue of olympus's dubious corporate takeovers has now become a question of whether the company engaged in illegal accounting. investigators from a third-party panel found the practice began in the 1990s. olympus president, shuichi takayama, says he's sorry. >> translator: we apologize and report that we've found facts that are different from those we announced at the news conference on october 27th. >> the company has dismissed executive vice president hisashi mori for his involvement in concealing losses from securities investments. the firm was found to have used more than $1.2 billion tver up its losse inst tunt was r appropriate for corporate takeovers. olympus paid consultants an unusually large fee of almt $700 million to assist in the

buyout of a british medical equipment maker. the company also purchased three domestic compaes at an inflated price. former ceo michael woodford pointed out the irregularities to the firm's chairman and board. heasudnldiisd st moh. yms entual appoiedhe thd-rtcoite investigate the extraordinary expenditures. olympus has been under pressure olympus president, shuichi takayama, said the company started investing in securities in the 1990s, when people were dealing with the collapse of the country's economic bubble. >> translator: most japanese companies at the time were struggling with stagnant sales and declining profits. they decided to invest in securities to try to improve their bottom lines. it seems our company has been hiding its losses since that time. a large number of japanese firms ended up with huge

investment losses in the 1990s. olympus is believed to have used shady accounting to cook its books. a fme surities company official tells nhk it was no secret the accounting practice involves the sale of money-losing securities to other companies, at prices higher than market value. that makes a corporation's books look better than they actually are. it's just window dressing, though. the hidden losses are still there. olympus officials continued to conceal the problem for many years. >> translator: those who are responsible for the cover-up must have thought the losses were very big. they must have thought putting them on the books would seriously harm the company.

>> investigators with japan's securities and exchange surveillance commission believe that olympus came up with the idea of a corporate acquisition as a way to write off its investment losses. olympus paid about $845 million in 2008 to the skuxt consulting firm axis and a related firm. it labeled the money as an advisory fee for the brokering of the $2.8 billion buy-out of a surgical equipment maker. the pay-out was 30% of the total transaction. that's unusually high. normally an advisory fee amounts to a few percent of the purchase price, axiam was created in the cayman islands, a well-known tax haven and dissolved three months after it received the payment from olympus. it's believed to have been a paper company. olympus also purchased three japanese firms between 2006 and 2008. the companies were said to have annual sales of $8ilon to

$26 million. olympus bought them for a total of $940 million. it's believed olympus paid the disproportionately high purchase price to hide its outstanding securities investment losses. from space to baktsia is the motto for olympus, which gained worldwide recognition for its state-of-the-art technology and high-quality lens manufacturing. but the company faces a difficult future after admitting to the cover-up. >> translator: i can't believe a world-class company like this is involved in something so dubious. >> i doubt olympus will be able to survive unless it eliminates misconduct. >> olympus shares lostut 30% of their value yesterday. overl they've plummeted by 70% during the past month. shares are currently trading at 734 yen. the tokyo stock exchange has launched an investigation into whether the company should be delisted because of the cover-up.

>> translator: we will try to prevent the delisting. >> takayama also said he thinks former president, kikuwa knew the cover-up knew the cover- was illegal. and wouldn't rule out that the company would file complaints againsformerries surveillance commission will launch a investigation to determine whether the executives violated the financial instrumes and exchange law. a special investigative squad from the tokyo district public prosecutor's office is looking into whether the former executives engaged in a accounting fraud. it is expected to ask for cooperation from overseas agencies. the u.s. feralea investigation haalready gnaled its involmenty asking for former ceo, woodford to submit relevant documents. former ceo woodford says olympus needs to completely

overhaul its management. speaking with nhk in london on tuesday, he said the president takayama and other executives must have been aware of the inappropriate procedures. >> and there's no credibility in the way they want to hide anding act for their own interests to protect themselves. it's shameful. it really is shameful. >> woodford stressed that big changes need to be made to remove the taint on the company's name, and he said he hoped for a swift inveigion by japese authoritie >>ell, now we're starting at e begiinofheru, but i inthe's so manmo qutions whicne to be aner. >> woodford has continued to pursue his allegations after leaving the company. olympus shares nose-dived on the tokyo stock exchange, waves

of sell orders hit them after the company admitted to covering up investment losses. the share price closed limit down, shedding 30%. the shock wave also dampened market sentiment across the board. the benchmark nikkei closed at 8655, down 1.25% or 111 points from monday. sources say market players view olympus's scandal as undermining their trust in the accounting and management systems of japanese companies. toyota motor has announced that it posted an operating loss in the first half of the physical year due to the impact of the yen strength and the march disaster. the world's top carmaker has predicted at the same time that floods in thailand will force its global production to fall. toyota said on tuesday that the erinlo tal $8 llion s mth througseemr. at in sharp ntrast to e

off.1 bli ihe year earlier piod. looking ahead, the company said it's difficult to make accurate sales and profit forecasts for the full fiscal year because of the effects of the flooding in thailand. toyota has been forced to suspend production at its plants in thailand because of the floods, and it also has to cut output in japan, north america, southeast asia, and other places as part supplies remain crippled. as a result, the automaker said its domestic production will drop 40,000 domestic units and overseas output at 110,000 as of the end of the week. for analysis of toyota's latest earnings, our business reporter, yonggi kang, has more. >> i think it explores the tough situation it's in now. toyota like other carmaker was hit by the march 11th earthquake and tsunami that caused disruptions as factories. now the company was in the process of recovering from the

march disaster, but the strong yen put more pressure on its business. what made it even worse was flooding in thailand. this is what the company official had to say. >> translator: we managed to improve our profitability and save about $640 million during the six months, but this was offset by the yen's appreciation. we regret to say we ended up with a loss of $418 million. japanese automakers were hit across the board by the strong yen and flooding in thailand, but of the three top automaker s in japan, toyota was the only one that posted an operating loss for the first half of this fiscal year. nissan, on the other hand, raised its full year profit

forecast last week. now analysts say the difference comes from toyota's dependence on domestic production. nissan is producing 72% of its vehicles overseas, minimizing the impact of currency swings and natural disasters. honda's output outside japan is 73%. and toyota's overseas production is 57%. now toyota's vice president says it is taking steps to reduce the risk of depending on domestic production. and also toyota's presence in china is weaker compared to nissan and honda. that was our business reporter, yonggi kang, reporting on toyota's earnings announcement. "newsline" is the place to turn to for the latest on japan post march 11th. we have two segments offering two unique perspectives on the fallout from the earthquake and tsunami. "nuclear watch" brings you insight and information on the

impact of the fukushima daiichi crisis. and "the road ahead" examines japan's efforts to recover and rebuild. don't miss "nuclear watch" and "the road ahead" on "newsline." in south korea, a growing number of people are enjoying the single life so much they're putting off marriage for a longer time than previous generations. this graph shows the average age of south koreans who marry for the first time. right now it's almost 32 for men and close to 29 for women. compared to 20 years ago, both genders are getting married more than four years later. with a report on this phenomenon is nhk world's kazuto sassa. ♪ a musical called "singles" is attracting big clouds in south korea. ♪

>> reporter: a single woman, close to 30, hovers between marriage and a career. >> translator: i sat through the play thinking, i've been there. i was moved by every line she said. >> translator: i identified with a lot of the things about marriage and life. >> reporter: as south korea's economy expands, more women put careers ahead of marriage. 30 years ago, about half of south korea's households had five people or more. now single people make up one-quarter of all households. the number keeps rising. 31-year-old woman lives on her own in seoul. she translates at the international events.

she left her jobt theompany and in may became self-employed. gradually work has increased. some months she makes tce h rm co. she has a boyfriend, but has no plans to get married yet. even after marriage, she wants to keep working and spending time on her own. but she feels pressure to be a traditional housewife. especially now she's passed her late 20s and is older than the time-honored marrying age. >> translator: it's not that i planned to be single forever. and never get married. i just don't want to do it until i know thatei married wl make me happier than i am now. >> reporter: more businesses now target singles. like this new restaurant in a

seoul financial district. 28-year-old onon owns it. he lives alone he's found that people who live on their own oftenat out. sometimes they find it hard getting enough nutritn. his menu is full of healthy choices like fish and brown rice. he also offers salads and fruits for a balanced diet. >> translator: it's an easy place for dining alone. >> translator: i like the restaurant because it's relaxing. translator: an increasing number of people want to enjoy their meals alone. i hope to open more restaurants geared to single people.

>> reporter: the real estate market now offers apartments for singles. this company in seoul started selling condos for singles in august. 90% have been sold. >> translator: it's an apartment for one person, so when you move in, you don't need a lot of furniture or electca appliances. a lot of apartments are too big for one. >> reporter: singles in south korea have put off marriage in a changing society. kazuto sassa, nhk world, seoul. a phenomenon we can see here in japan as well. next we go to cholaphansa narula in bank dock. the waters in bangkok continue to advance further into the thai capital. but people are trying their

hardest to keep on worng in increasinglyifficult circumstances. slly but steadily, the waters advance on central bangkok. on tuesday,hkbsvedhe lel water i thisre had novernight. the flood has now reached about five kilometers from the city's center. some residents with a head for business are finding ways to make money. ferrying passengers across the water is one way. and this boat taxi is operated by a man who normally run as motorcycle taxi. he's earning more than he did before. >> translator: it's different from my motorcycle taxi. now i earn more than $65 a day >> reporter: rubber boots are also selling ll ait normay wear ts sortf otwear, but they're getting more popular as people are forced to wade into the stagnant floodwaters. translator: i think the floodwater will only get deeper,

and it's very dirty. so i definitely need rubber boots. >> reporter: along one of bangkok's canals, residents are struggling to lead something like a normal life. but it's getting harder by the day. >> translator: you can't fight the water. i'm trying to keep in b started in late ju,heth isaste toll has risen steadily to at least 527 so far. and th hundreds of thousds of people displaced nationwide, the crisis is still far from over. nhk has been granted rare access to one of the contested areas of the spratly islands claimed by countries including china and the philippines. deyoe gracias begins a special report. >> reporter: this is the philippine nave warship that will take us into the disputed

zone. the supplies being loaded are for residents of the spratly and other islands controlled by the philippines. >> this is the first in a very long time that a foreign media will actually witness troop rotation and a logistisupply run in the disputed area of south china sea. the warship was built in 1943, in the middle of world war ii. the philippine navy has made little progress modernizing its fleet. many of its vessels are decades old. immediately after the ship leaves port, the electrical system goes down. the motor for the wheel loses power. the only solution is brute force.

the next morning, there is tension on deck. >> good morning, sir. >> an unidentified military helicopter has appeared in the sky. it apparently flew past the ship several times during the night to have a closer look. our ship is headed for ayungin reef, where the philippine mitary has a base. 16 years ago, china built a structure in shallow waters about 40 kilometers west of the reef. that gave it defacto control of the area. in response, the philippines stationed a vessel on the reef to check the advances of china.

for the first tv crew to be allowed so deep inside the disputed zone. four navy personnel are stationed here, keeping watch over the surrounding waters. >> translator: this our radio room. >> reporter: they communicate via radio with other philippine bases and with passing ships. they are stationed on the island around the clock, rotated out every few months. supplies are delivernly once a month. all they get are two drums of gasoline and a little more than 50 kilograms of rice. >> translator: the rice is not enough. we're running out of supplies. >> reporter: the navy personnel stationed here catch fis to make up for the shortage of food. on the deck are pots for growing vegetables.

they look after a good portion of their needs by themsees words o prayer are written on the rusty walls. >> translator: all we see are chinese warships. we have a very few weapons to speak of. but we have to deal with all kinds of situations. reporter: there's little prospect that the territorial issue will be resolved any time soon. until then, the members of the armed forces stationed here will continue to hope their prayers are heard. charmaine deogracias, nhk world, in the spratly islands. >> and in tomorrow's report, we'll meet some of the families paid to live in the disputed area as part of the philippine government's efforts to

strengthen its claim of sovereignty. that's it for our bulletin today, i'm here in bank dock. >et's now turn to world hi there, time to get you updated on the world's weather. we are going to see another mostly dry day as we head into wednesday across japan. but towards the end of the week, that's going to change as showers and thunderstorms become more prominent across the south. now with all of this coming up from the east china sea, we'll get a little bit of it across to the korean peninsula as well. at the moment, high pressure keeping things mostly dry and clear across continental eastern asia. but you will notice all of this blue and mess down here. we have a tropical depression that is kicking up a lot of heavy rain. in, ldets rnn t dohoistaonov

anal ththla awe. iticanyorengitfbrlsnd caod, erweeee seeing some ongoing heavy rain. that is all going to be heading up towards southern japan, towards the end of the week, that's where we'll see the thunderstorms coming in. but in the next three days, plenty of heavy rain to come in places like the southeastern coast and pushing a little far inland awe. sthstn cnathe. taans llsarf e nohe phipne mpatewe,5 bako n shanghai, with 16 in tokyo, mid teens in seoul as well as beijing, wh jt s for the high in ulan bator. in north americ youe lking od, hi presse keeping things mostly clr, just a few ows ming int the northwest coast ther let's talk abo what's happening here. we've got storms all the way from the great lakes right down

to the gulf of mexico. and they're going to be a bit on the severe side. let's look at our severe weather outlook today. thunderstorms reaching all the way up to just south of the great lakes. this is where it's going to be worst. we're talking about texas all the way up into parts of western illinois that is. now locally heavy rain could lead to flash flooding, damaging winds possible as well as some large hail. behind the system is going to be very cold, all right? so this is going to be turning to snow for you around the great lakes. maybe about three centimeters in the space of an hour. so that's really going to be ese going to come down as the system passes of course. two degrees in denver and snow on the cards for you. into europe we go. gettg le b outord w ng s rtal y'r gng ho isotoio athg to o. w s s

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"newsline" returns at the top of the hour with more news updates. in the meantime, stay tuned to more here on nhk world.