D substantial operation of E Co., Ltd. (hereinafter referred to as “E”), development of high-profit marketing programs for machine siren projects, holding investment briefing sessions, etc., and F was a representative director in the name of the above company, who is in charge of education and branch management.

The Defendant, in collusion with D and F, conspiredd with the actual operator of E’s North Daegu Total Market, paid high-profit profits exceeding the principal by precluding sales, such as sound and vibration sports equipment, and chain store recruitment business, and was willing to receive investment money from many and unspecified people.

1. Any person who desires to operate multi-level marketing business in violation of the Door-to-Door Sales, etc. Act shall register multi-level marketing business;

Nevertheless, without registering multi-level marketing business in collusion with D, F, D, and F, from January 2, 2014 to June 2, 2015, the Defendant established the E head office on the 3rd floor of Y in Daegu-gu Ha-gu H1st, and offered membership, and “If the Defendant concludes a contract with the company to buy sports equipment owned by our company, he/she shall pay approximately KRW 7-8% of the commission fee monthly in terms of the monthly consignment fee for 12 months, and re-purchases the machinery which used to elapse after the lapse of 12 months at 50-60% of the cost of purchase.”

As such, when recruiting multi-level marketing salespersons to many unspecified persons, the multi-level marketing salesperson was registered as a sales salesperson (FC) who belongs to the sales team or agency, and then the sales of other persons was conducted by introducing them, the basic salary of KRW 300,000 shall be paid, and if the sales of the sales team has been achieved for three months, the sales of the sales team was increased by the team leader and paid KRW 50,000 per month.

In addition, when the sales of the team leader have been achieved for three months, KRW 40 million per month, 70,000 won per month shall be increased to the head of the division and shall be paid KRW 70,000 per month, and if the head of the division has achieved KRW 70,000 per month during three months of the sales of the head of the division, the head of the headquarters shall be increased to KRW 100,00 per month.