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Gather all the ingredients.
Cut 2 oz used kombu (kelp) into thin strips.
Remove the seeds from 1 dried red chili pepper and cut it into thin rounds.
Transfer the sliced kombu to a medium saucepan. Add 1 cup water, 1 Tbsp sake, and 1 Tbsp mirin.
Add 1 tsp rice vinegar (unseasoned), 2 Tbsp soy sauce, 2 tsp sugar, and ½ tsp katsuobushi (dried bonito flakes).
Add the red chili pepper. Bring the liquid to a boil over medium heat.
Once boiling, reduce the heat to low and simmer until the liquid is almost evaporated, about 20–25 minutes. If the kombu is still not tender, add water and continue to cook. Check the taste and add more sugar and/or soy sauce, to your liking.
Sprinkle ½ tsp sesame seeds on top. It‘s ready to serve.
Keep the Tsukudani in the refrigerator and consume within 2 weeks.