That's probably part of it and Godzilla is a direct response to it, but Japanese horror goes back further than that. If you're interested, it's worth exploring Japanese folklore. Something Wicked from Japan is an interesting collection of ukiyo prints about this: https://www.barnesandnoble.com/w/something-wicked-from-japan...
It does feel there's something of a line between the older folklore and the urban, technology-infused tales, but overall it is a great connection to make. Takashi Miike's The Great Yokai War is a nice little take on the old and new sensibilities: https://en.m.wikipedia.org/wiki/The_Great_Yokai_War