1. Article 2 subparag. 5 of the former Door-to-Door Sales, etc. Act (wholly amended by Act No. 11324, Feb. 17, 2012; hereinafter “former Door-to-Door Sales Act”) provides that “multi-level marketing” means selling goods through a multi-level marketing organization, in which a sales business entity solicits a specific person to obtain certain profits (referring to retail profits that a multi-level marketing salesperson gains by selling goods, etc. to consumers in multi-level marketing and support allowances that a multi-level marketing business entity pays to that multi-level marketing salesperson) by engaging in any of the following activities.”

(b) "Goods, etc. supplied by the relevant dealer shall be sold to consumers";

The item provides that "the whole or part of the consumers as referred to in item (a) shall be admitted as assistant multi-stage salesmen of the relevant specific person, and his assistant multi-stage salesmen shall carry out the same activity as his activity."

In addition, Article 2 subparagraph 7 of the former Door-to-Door Sales Act provides that "the term "support allowances" refers to the economic benefits that multi-level marketing business entities pay to multi-level marketing salespersons in relation to the following matters, regardless of the name and form of payment, such as sales commission, commission, incentive, support fund, etc., and the economic benefits are paid

organized management, education and training performance for assistant multi-stage salesmen belonging to multi-stage salesmen;

(b) Sales performance of goods, etc. of multi-stage salesmen or sales performance of goods, etc. of assistant salesmen belonging to such multi-stage salesmen;

Article 2 subparag. 6 of the former Door-to-Door Sales Act provides that "multi-level sellers" shall establish or manage a multi-level marketing organization (hereinafter referred to as "multi-level marketing organization") and a multi-level marketing organization to engage in multi-level marketing business.