Compressed modernity meant Japan's premodern psychic substrate only needed un-suppression in 1990, not reinvention
The relevant question isn't why Japan makes ghost stories — it has always made ghost stories. The question is why this particular grammar crystallized in this exact decade. The answer involves timing more than tradition.
Japan's modernization timeline (1868 onward) was telescoped into decades that took Europe centuries. This produced modern infrastructure that was always slightly thinner than its premodern psychic substrate. When the modern layer cracked in 1990 — lifetime employment gone, paternal authority collapsed, public-safety contract shattered by Aum, the Kobe quake, and the child murders — the older substrate didn't have to be rediscovered. It only had to be un-suppressed. The genre didn't need to invent new monsters; it needed to relocate the old ones from the village to the danchi.
Kurosawa on Pulse: "I wrote this film as the internet was just starting to become popularised… it was just kind of this unknown force that was spreading like a virus throughout the country." The film isn't about the internet. It's about the moment before anyone had decided what the internet would mean — when the affect around it was maximally undefined and therefore maximally available for horror. Which also explains why the boom ended: by 2005–2006 the cursed-VHS iconography looked dated rather than uncanny. The underlying anxiety had resolved into ordinary tedium. You can't be haunted by something you check 200 times a day. The film grammar lost its referent.
Source claim: J-horror crystallized in the 1990s because compressed modernity had left Japan's premodern psychic substrate only one layer below the surface — when the modern layer cracked, the old monsters didn't need to be reinvented, only relocated.