Wakayama (Wakayama-shi) is the capital city of Wakayama Prefecture in the Kansai region of Japan.It occupies 4 percent of the land area, and has 40 percent of the population, of the prefecture. The city was founded on April 1, 1889. This population increase has occurred despite Wakayama's beleaguered economy, which has suffered since Sumitomo Steel moved much of its steel producing operations to China. The Wakayama steel mills have since been reduced and restructured, completely shutting in 2004. Additionally, Wakayama is famous across Japan for its umeboshi and mikan.