The modern incarnate of the Liberal Party was a conservative reformist party created in 1998 and led by Ichiro Ozawa. It officially merged with the Democrats September 22, 2003. The Liberal Party first existed in post-World War II Japan and would eventually merge with the original Democrats to form the ruling Liberal Democrats.
There was also a short-lived Liberal Party formed in 1994 by Koji Kakizawa and Michio Watanabe. It was one of the parties that merged to form the New Frontier Party.