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AAP
AAP
Tess Ikonomou

Defence, energy are priorities for Japan-Australia ties

Japan Australia Tokyo
Japan's ambassador to Australia says both nations must "advance defence industrial co-operation". (Dominic Giannini/AAP PHOTOS)

A successful bid by a South Korean defence giant to take over an Australian-based shipbuilding company expected to construct Japanese ships would cause "some reaction" in Tokyo.

Hanwha is seeking to double its stake in Austal, the nation's sovereign shipbuilder, to 19.9 per cent, which needs approval from Australia's Foreign Investment Review Board.

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