SB Global (CEO: Malsook KIM) that has exclusive sales right of Fresh HY Laundry Ball in South Korea announced on June 5, 2019, that it has applied for an injunction prohibiting the sales of the product against Whealthfields Lohmann Korea (CEO: Tai Wai David Cho) at Seoul Central District Court on May 31.
SB Global stated that "Whealthfields Lohmann Korea does not acknowledge SB Global's exclusive sales right of Fresh HY Laundry Ball that is formed by a contract and attempts to sell the product directly to the market" and hence, "it clearly is a breach of the contract".
SB Global has acquired exclusive sales right of Fresh HY Laundry Ball from Whealthfields Lohmann Japan which produces the product last year through a Japanese agency. Yet, Whealthfields Lohmann has been planning to distribute Fresh HY Laundry Ball after establishing it's Korean branch in February this year which was only two months after the contract was signed.
SB Global claimed that "it is a typical misuse of power in which Whealthfields Lohmann breached the existing contract to directly expand it's business after confirming that SB Global has secured the brand image and distribution channels in Korea. SB Global had not been receiving the guaranteed supply since signing the contract".
Moreover, SB Global emphasized that "Whealthfields Lohmann did not have any intention to fulfill the contract from the beginning, given that they have demanded to revise the contract by increasing the supply price by 50%, only 2 months after the contract was signed" and that, "SB Global was taken back by seeing such conduct that was far from the global standards, despite that Whealthfields Lohmann identified themselves as a global company".
SB Global SB Global spoke out their concern that "If this behavior continues, consumers will find increasing retail prices of Whealthfields Lohmann products by 50%,100%, without knowing why" and that, "SB Global is genuinely worried about possible consumer injury in Korea".
In addition to the domestic consumers, the company is determined to respond firmly to this matter to prevent any harms that could be caused to other companies that trade with Whealthfields Lohmann, even in the future.
SB Global said that "We have already suffered huge losses because prepare all litigation claims," he said, "I will try to ring alarm bells in the behavior of global corporations to ignore the laws."SB Global said that "Because we already have suffered a huge loss, we are preparing every legal action such as the claim for damages" and that, "SB Global will try to warn the community about such behaviors of a global company that ignore the domestic laws".
Whealthfields Lohmann has brands such as Walch, Limn, La Mamma, Green way, SEIKA, Walex84, Kisso, Softwice, Honeybaby, Bering, Walex, Natrapari, and Frouiter.