Through analyzing educational policies made by the Koizumi Cabinet, the aim of this paper is to consider how Japanese educational system is being transformed at the beginning this century. The Cabinet is performing a neoliberal “Structural Reform” in various areas by which Japan responds the development of globalization led by the United States and will enhance Japanese international competitiveness of economy and industry. The Structural Reform has influenced Japanese educational system. Because former educational system aiming for leveling and growing all citizens dont pay the nation and the industry at present, so the Cabinet attempts to construct a new educational system which offers the differential education according to social class. However, if citizens belonging on social hierarchical subordinate position acknowledge this new educational system, it will not function well. Therefore, the Cabinet is doing a neoconservative reform in addition through which it expects that all citizens will accept abovementioned differential education. In Japan, the neoliberal structural reform of education has started since 1984, and it followed the value of political neoconservatism. With that as a start, the neoliberal educational reform succeeded. In 1995, some of the Head of the Japanese business world proposed the neoliberal style of school reform. In 2000, the meeting which was organized by the then Prime minister criticized the uniformity of the Japanese educational system and it tried to introduce the Japanese style of the charter school in the United States. In 2003, the minister of Education, Culture, Sports, and Science requested the committee for advice. That final report repeated the economical neoliberalism and political neoconservatism. In line with that report, the Structural Reform is being embodied in educational system through several policies, which is revealed in this paper by examining national curriculum standards reform, initiation of the comprehensive five-day school week system, freedom of public school choice, unified lower and upper secondary school education, and special structural reform zones.