The landmark of Kobe. Kobe is the sixth-largest city in Japan and the capital city of Hyogo Prefecture. It is located on the southern side of the main island of HonshÃâ¦Ã«, on the north shore of Osaka Bay and about 30 km 19 mi west of Osaka. With a population around 1.5 million, the city is part of the Keihanshin metropolitan area along with Osaka and Kyoto.