The Japanese national police decided to replace their old Model 60 S&W revolvers in 1995. While traditionalist elements liked the use of a non-threatening compact revolver, others advocated for a modern sidearm - essentially a semiautomatic service pistol. Trials took place in 1995, and the SIG P230 in .32ACP was a compromise choice - semiautomatic, but compact.

The version of the P230 that SIG Germany submitted to these trials had a couple unique features. Namely a manual safety (to complement the decocker and empty-chamber carrying of the Japanese police) and a lanyard loop on the left side of the grip. However, the competition remained mired in controversy after SIG was awarded the contract, and only a few thousand were actually procured. In 2006, the J-frame scandium S&W Model 360 was adopted, returning the force to its preferred snubby revolvers.

A batch of apparently overrun P230JP pistols were imported into the US for commercial sale in 1997. Interestingly, these came in two serial number ranges. Guns in the 181xxx range are marked "Made in Germany", and guns in the 163xxx range are marked "Made in West Germany", although both have 1997 proof codes. This suggests that a supply of leftover parts from before German reunification were used to produce the Japanese police pistols.