The judgment of the first instance shall be revoked.

The plaintiffs' claims against the defendants are dismissed in entirety.

The total cost of the lawsuit shall be the cost of the lawsuit.

1. Basic facts

A. The party status 1) Defendant R Co., Ltd. (hereinafter “Co.”), omitted the indication of “Co., Ltd.”

(2) Defendant K is the head of “S Group” centering around the Seoul area, who is in charge of public relations events, planning, sales strategies, etc., and Defendant L is the head of “S Group” centering around the Seoul area. Defendant L is the head of “S Group” centering around the Seoul area, who is in charge of the management of its multi-level marketing salespersons, promotion of sales performance, etc.

3) The Plaintiffs were subscribed to Defendant K, L, etc. as multi-level marketing salespersons by Defendant R’s solicitation. B. Based on Defendant R’s class structure and bonus payment standard, Defendant R’s multi-level marketing salesperson’s class structure and bonus payment standard of Defendant R’s multi-level marketing salesperson in 2015 are as shown in attached Table 1. The main contents are as follows.

(1) A person who intends to become a multi-level marketing salesperson shall be a member if he/she is registered as a member in Defendant R online, and if he/she has accumulated one million PV (transaction performance of approximately two million won) within a certain period, he/she shall be elevated to Hlale M, but in the case of HM, a small number of recommendation allowances and active allowances may be paid.

(2) If a member of the National Assembly meets the requirements, such as stockpiling up 2 million PV ( trade performance of approximately four million won) within a given period, it may be promoted to AM, and a variety of support allowances, such as management allowances, may be received through the fostering of a subordinate multi-level marketing organization that becomes a class of AM or higher.

(3) AM or higher-class position includes Major Master (M), Hyupior Master (SM), Elite Master (EM), Crow Master, and Toever Master (TM), and multi-level marketing salespersonss receive more support allowances to be increased to higher-class class.

2 The criteria for the class structure and payment of bonuses for multi-level marketing salespersons in 2016 are as shown in attached Form 2, and part of the name and class structure of class allowances and the criteria for the payment of bonuses is as stated in attached Table 2.