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House of Councillors elections were held in Japan on 12 July 1998.
The Liberal Democratic Party (LDP) under Ryūtarō Hashimoto had restored single-party government in 1996 and was now aiming to also regain clear control of the House of Councillors, in which it was several seats short of a majority. However, it lost 13 seats in the elections giving the opposition clear control and leading to prime minister Hashimoto announcing his resignation. Keizō Obuchi was elected LDP president on 24 July, defeating Seiroku Kajiyama and Junichirō Koizumi.
On 30 July 1998 Obuchi was designated as prime minister by the Diet against the vote of the House of Councillors where DPJ president Naoto Kan defeated Obuchi by 142 votes to 103. Obuchi entered coalition negotiations in late 1998. In January 1999 the LDP entered a ruling coalition with Ichirō Ozawa's Liberal Party, bringing the government within few seats of a majority; in October 1999 New Komeito also entered the coalition, ending the divided Diet.