HunterNet Newsletter – May 2026

Federal Budget

Several Japanese and Korean investors have reached out post the federal budget release. If anything, they seem to be more being intrigued by the reaction in the polls, especially with respect to the rise and rise of One Nation.

North Asian investors and government (consulates/embassies) have only ever had to factor in the idea of a Labor or Coalition government in power, which is unsurprising, given history. Therefore, they are doing the calculus on what a potential One Nation Opposition/Government would mean for North Asia.

On LNG, Senator Pauline Hanson released her policy position on JV equity investment which would gel well with North Asian investors who see any co-investment with a government a sure bet when it comes to predictability, the number one issue plaguing current investment. One would imagine that coal would get a similar type of treatment. This has been greeted positively.

Interesting that the latest Redbridge-Accent Poll has One Nation winning Hunter and Paterson changing hands from Labor, which has held the former seat uninterrupted for 115 years.

Japan

Met with the former Australian MD of one of the largest industrial companies in Tokyo who said Australia is being deprioritised as a core market for the company. What is left of the business is being kept as a footnote inside an annual report. It will be no surprises to readers that ‘onerous regulations’ (Safeguard Mechanism & EPBC Act) as the main culprits.

Housing remains a strong focus for many Japanese utilities (gas, electricity, rail) to diversify revenue streams from the core markets inside a domestic market with a declining population. Japan population declined by 900,000 in 2025 as birth rate stalls, although pleased to say I will add to the 2026 tally this September. Main housing markets remain Sydney & Brisbane. Melbourne being viewed as a change in government play in November.

On a positive front, Japan will celebrate the 50th Anniversary of the Nara Treaty at Parliament House on June 30th at a black-tie gala.

Defence is the hottest item on Japan’s agenda. They are desperate for Mogami to be a success but hold reservations on Australian shipbuilding capabilities to be able to deliver remaining ships on time and on budget. Expect to see more activity here.

Part of Japanese PM Takaichi’s recent visit was to help bolster defence ties. Therefore, expect to see more attention be given to strategic partnerships.

Korea

Korea has also been on the defence train. Corvus Technology Solutions opened a defence manufacturing facility ion Bayswater, Melbourne in May. Corvus is in partnership with Hanwha Defence.

Hyundai Engineering has spun off its New Zealand business from Australia HQ meaning more time will be devoted to housing, renewables, hydrogen, port and civil engineering at home.

Note the 47th AKBC-KABC annual meet will be in Adelaide – Sept 1-3 with a focus on LNG, diesel and critical minerals.

CJ Foods has had a change in MD. Now, David Yang of APAC HQ – includes Vietnam & India – will assume responsibility for Korea’s largest food group.

KOTRA (Korea’s Austrade) has appointed a new Director General, Mr Jongsang Kim in Sydney.

US Markets

Currently Walmart is keen on supply chain diversification from China to India and Australia. This is across a range of items from pet food all the way to textiles, agriculture and beyond.