Japan has voiced lingering concerns after Australia approved South Korean defense conglomerate Hanwha Group\u2019s 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.<\/p>\n
Under the decision, Hanwha will raise its holding in Austal from 9.9 percent to 19.9 percent, becoming the company\u2019s 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\u2019s state-of-the-art frigates.<\/p>\n
Those concerns are amplified by Austal\u2019s central role in Australia\u2019s future surface fleet. In August, Canberra selected an upgraded version of the Japan Maritime Self-Defense Force\u2019s Mogami-class frigate \u2013 known in Tokyo as the \u201cNew FFM\u201d or 06FFM \u2013 as the Royal Australian Navy\u2019s next-generation general-purpose frigate.\u00a0<\/p>\n
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 scale and duration of the program heighten the stakes for protecting proprietary technology.<\/p>\n
South Korea is widely viewed in Tokyo as both a strategic and commercial rival in the global shipbuilding market, fueling skepticism over whether firewalls around sensitive information can be fully enforced. Japanese officials have privately questioned whether technical data related to Japan\u2019s most advanced stealth frigate designs could be indirectly accessed or inferred through Hanwha\u2019s expanded presence at Austal.<\/p>\n