Japan has voiced lingering concerns after Australia approved South Korean defense conglomerate Hanwha Group’s plan to nearly double its stake in shipbuilder Austal. Tokyo fears the move could complicate efforts to safeguard sensitive Japanese defense technology tied to a flagship bilateral naval program.

Under the decision, Hanwha will raise its holding in Austal from 9.9 percent to 19.9 percent, becoming the company’s largest single shareholder. While Hanwha will remain a minority investor, Japanese officials worry the increased influence could heighten the risk of exposure of confidential design data and intellectual property linked to Japan’s state-of-the-art frigates.

Those concerns are amplified by Austal’s central role in Australia’s future surface fleet. In August, Canberra selected an upgraded version of the Japan Maritime Self-Defense Force’s Mogami-class frigate – known in Tokyo as the “New FFM” or 06FFM – as the Royal Australian Navy’s next-generation general-purpose frigate. 

Australia plans to acquire 11 vessels under the program at a cost of about AU$10 billion (US$6.6 billion). The first three ships will be built in Japan by Mitsubishi Heavy Industries, with the remaining eight to be constructed by Austal at its Henderson shipyard near Perth beginning in the next decade. Japanese officials say the........

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