The objective scope of res judicata is an important benchmark for ensuring the balance between the two val-ues of national resources and personal interests in the sense of procedural law.However,its theoretical development is lim-ited by normative limitations,insufficient interaction,legal bias,and cannot play its due practical guidance role.The cur-rent interpretive theory,represented by the theory of facts,has problems such as being unable to justify itself in the theoret-ical system.However,the Japanese"theory of issue effectiveness",which legalizes issue preclusion doctrine in the Anglo American legal system,has not yet learned its essence.Based on a single principle of good faith,it purely imitates the ex-temal structure of issue preclusion doctrine,yet has always been unable to fully integrate with the local system.The res ju-dicata effect of issues is similar to that of the subject matter of the lawsuit and its legitimacy should be based on the process logic of deductive reasoning,the coordinated maintenance of public and private interests,and the specific application of honesty and credibility.The determination of giving such effect should be based on substantial comparison,and factual is-sues should not be rigidly compared after being restricted by types such as elements or defense facts.The criticality of the issues should be judged using the substitution method,and the parties involved should also bear a certain degree of pru-dence obligation towards the criticality.The decisiveness of an issue not only refers to the fact that it has been adjudicated by the court,but also refers to the claim that should have been raised but has not been actually adjudicated in the previous lawsuit.Unlike previous understandings,the res judicata effect of key issues embrace both public and private benefits so that it should be initiated by courts'authority rather than relying solely on the claims of the parties.