The Australian government has approved a request by South Korea’s Hanwha Group to increase its shareholding in Austal Limited, a key company in Australia’s defence shipbuilding sector.

The decision allows Hanwha to lift its stake from just under ten per cent to just under twenty per cent, following a detailed national security review by the Foreign Investment Review Board and multiple government agencies.

Austal, based in Western Australia, is formally designated as a sovereign defence shipbuilder and plays a central role in constructing naval vessels for the Royal Australian Navy and allied forces, including the United States Navy.

The company is considered a critical component of Australia’s defence industrial base, particularly within the broader Indo-Pacific security environment and allied defence cooperation frameworks.

The approval comes with strict conditions designed to protect Australia’s national security interests.

Hanwha will remain a minority shareholder and will face limitations on access to sensitive defence information, along with tightly controlled criteria governing any future board representation.

Australian authorities have emphasised that operational control and strategic decision-making will remain firmly under Australian oversight.

Hanwha, a major industrial and defence conglomerate, first acquired its initial stake earlier this year and subsequently sought permission to expand its investment.

The Australian government’s decision reflects a careful balance between encouraging trusted foreign investment from allied nations and preserving sovereign control over critical defence capabilities.

Officials involved in the review stressed that defence, security, and foreign policy considerations were central to the assessment.

The outcome underscores Australia’s broader approach to managing foreign participation in strategic industries, allowing international partnerships while maintaining clear boundaries to protect national interests and long-term security.