Defendant

A As a fine of KRW 50 million, Defendant B and C are punished by KRW 10 million, and Defendant D is punished by fine of KRW 100 million.

Punishment of the crime

A multi-level distributor shall register with the Fair Trade Commission or the Special Metropolitan City Mayor, etc. with certain documents, as prescribed by Presidential Decree, and shall not establish, manage, or operate a multi-level marketing organization, etc. without registration.

Nevertheless, in collusion with E (unexploitation), the Defendants did not register the multi-level sales business as a multi-level sales business, from November 23, 2015 to September 29, 2017, at the office of the F Building G, etc. in Seocho-gu Seoul Metropolitan Government, Defendant A, B, and C, a multi-level sales organization, hold a briefing session for the business of “H” to distribute promotional materials and publicize the business at the same time, and designate the multi-level sales organization as a “group” and manage the members of the multi-level sales organization as one-level sales organization. Defendant A and B reported the results to the head office after conducting the actual inspection, document examination, etc. of domestic goods suppliers, and Defendant A and B processed the affairs of domestic delivery management, payment of price, etc. of H’s head office located in China, and E received allowances from the head office in China to distribute allowances.

H’s class system is a single salesperson as a member of the sales organization through the head office in China. The salesperson, upon being introduced by the first salesperson, was successively two, three, four, five, and five subordinate salespersons. At the time of joining as a salesperson, if the salesperson pays 250 U.S. dollars 1,50 to 1,500 at the time of joining as a salesperson (hereinafter “three-party membership”), he/she is admitted as a sub-party member according to the amount of subscription fees. At the time of joining as a sub-party member, if three or more of the subordinate salespersonss are paid members, and if three or more of the subordinate salespersonss are paid members, and if there are three or more of the subordinate salespersons from among the subordinate salespersonss (in other words, if there is a sub-party nine persons under the sub-party three, i.e., e., the sub-party).