All appeals filed by the prosecutor against the Defendants are dismissed.

1. Although the summary of the grounds for appeal falls under the multi-level sales organization under the former Door-to-Door Sales Act, the lower court acquitted the Defendants who were the chief of the regional headquarters of F Co., Ltd. on the premise that F Co., Ltd. is not a multi-level sales organization, or erred by misapprehending the legal doctrine.

2. Determination:

A. Summary of the facts charged in the instant case 1) Defendant A is the Defendant F Co., Ltd. (hereinafter “F”) with its head office in the sixth floor of the Yeongdeungpo-gu Seoul Metropolitan Government E building.

The Seoul Headquarters in the third floor of the Gangnam-gu Seoul Metropolitan Government (from December 2009 to November 201), the head of the Dong headquarters in the fifth floor of the H building in Gwangjin-gu in Seoul (from September 2010 to August 201). Multi-level marketing entities shall either be registered with the Fair Trade Commission or registered with the Special Metropolitan City Mayor, Metropolitan City Mayor, Do Governor, as prescribed by Presidential Decree. Defendant A shall hold shares of 12%, J (the 16% General Manager, the 12% Manager, the 16% Manager's shares), L (the 16% Manager's shares), M (the 16% Manager's shares), N (the 10% Seoul Head Office, the 10% Manager's shares), the head of the Dong headquarters in the fifth floor of the Seoul Special Metropolitan City, and the head of the Gu headquarters in the 10th level of public offering and training (the 10% shares of Cheongju) and each of the above 16th members of the Seoul Metropolitan Government.