Japan voices concerns as South Korea's Hanwha expands stake in Australian shipbuilder

Japan is concerned about Australia's approval for South Korean Hanwha Group to nearly double its stake in shipbuilder Austal, raising it from 9.9% to 19.9%. This makes Hanwha the largest shareholder, prompting worries over the safeguarding of Japan's sensitive defense technology related to advanced naval programs.

Australia plans to build 11 new frigates, with some construction occurring in Japan. Japanese officials question whether sensitive data could be compromised due to Hanwha’s influence.

Australian Treasurer Jim Chalmers approved the stake with strict conditions, assuring limited access to sensitive information. Despite these assurances, Japan remains anxious, emphasizing the need for close coordination.

The situation underscores the complexities of defense alliances in the Indo-Pacific region as Australia balances its partnerships with Japan and South Korea.