Australia’s government has approved South Korea’s Hanwha Group to raise its stake in local shipbuilder Austal to 19.9%, while imposing strict conditions to limit foreign influence over the country’s key defense assets. The decision follows multiple failed takeover attempts by Hanwha, which already owns 9.9% of Austal. Finance Minister Jim Chalmers said the move aligns with national security interests and ensures Hanwha remains a minority shareholder. The approval has sparked debate within Australia’s defense community, with analysts warning that Hanwha’s growing presence could affect Austal’s operations and its U.S. business segment, which generates most of its revenue. Austal plays a central role in Australia’s naval modernization and holds major contracts with Japan’s Mitsubishi Heavy Industries, a direct competitor of Hanwha. Experts say Canberra’s decision signals a cautious openness to foreign investment but underscores the government’s intent to retain domestic control over strategic defense assets. Austal’s management has pledged to evaluate any future proposals carefully, balancing shareholder interests with national security priorities.