All appeals are dismissed.

The Defendants’ grounds of appeal are also examined.

1. Article 2 subparag. 5 of the former Door-to-Door Sales, etc. Act (wholly amended by Act No. 11324, Feb. 17, 2012; hereinafter “Door-to-Door Sales Act”) provides, “multi-level marketing” refers to selling goods, etc. through a multi-level marketing organization in which a sales business entity is admitted to a sales organization by stages. Here, “goods, etc.” refers to “goods, etc. (including the right to use a certain facility or to receive a service)” and “sale” includes “entrustment and brokerage”.

(See Item 1 of the same Article) and such multi-level marketing business entity shall register with the Fair Trade Commission, etc. (Article 13(1)); and it shall not pay economic benefits to multi-level marketing salespersons themselves to recruit subordinate salespersons (Article 23(1)4); and it is punished by a person who opens, manages, or operates a multi-level marketing organization without registration and a person who pays economic benefits to a multi-level marketing salesperson itself to recruit subordinate salespersons.

(1) Article 51(1)1 and Article 52(1)2 of the Act provides that the court below recognized the fact that Defendant A, Defendant B, and C, the representative director of an incorporated foundation I (hereinafter “I”), in collusion with the Defendant A, Defendant B, and C, operate a multi-level marketing business without registration, and the Defendants conspired to offer subordinate salespersons with each other economic benefits on the solicitation of subordinate salespersons itself.

Furthermore, with respect to Defendant A’s assertion that I did not meet the requirements of a multi-level sales organization and did not exist any goods or services sold, the lower court classify the rating of the designated applicants for funeral expenses into Grade 5, such as a general member, team leader, director, head of a department, director, and director. The lower court set the rating of the designated applicants for funeral expenses by either directly recruited a member or recruited by his subordinate salesperson at a certain number.