Tokyo insists the strength of its ties with Canberra will not be affected by the approval of a South Korean defence company gaining a greater stake in an Australian-based shipbuilder expected to build Japanese ships.
Treasurer Jim Chalmers announced on Friday he would clear the path for Hanwha to increase its shareholding in Austal, the nation's sovereign shipbuilder, from 9.9 per cent to 19.9 per cent.
