PETALING JAYA: A South Korean cosmetics company is seeking damages from Felda Wellness Corporation (FWC), claiming the Malaysian company failed to perform its agreed duties under a US$35 million (RM137 million) contract.
Naerok Resources, which makes cosmetics using cultured coconut extract (CCE), claimed that among others, the Felda affiliate had failed to make payment of service fees and investments for product and business development.
“In addition to developing products using CCE, Naerok was also engaged to perform consulting and marketing services for FWC in launching the products in the Korean market,” The Korea Times quoted company officials as saying.
Established in 2014, Naerok has expanded its product profile from skincare products to health supplements.
In December 2017, it was granted a patent for its method of making fermented coconut oil by the Korean Intellectual Property Office.
The company is now seeking arbitration proceedings against FWC which develops therapeutic products derived from plants and botanicals.