A defendant shall be punished by imprisonment for one year.

However, the execution of the above punishment shall be suspended for two years from the date this judgment becomes final and conclusive.

Punishment of the crime

The Defendant operated door-to-door sales business that sells health food and packaged meat with the trade name “C” from September 1, 2009 to March 2010.

1. In order to open, manage and operate a multi-level marketing organization in violation of the Door-to-Door Sales, etc. Act, it shall be registered with the Fair Trade Commission or competent authority, and it shall not impose an burden of at least 50,000 won per annum on a person who intends to be a multi-level marketing salesperson or a multi-level marketing salesperson under the condition that he/she would be subject

Nevertheless, on November 4, 2009, the Defendant, without registering multi-level marketing business, entered into a multi-level marketing organization with KRW 120,000 as a multi-level marketing organization for the purchase of goods at C offices located in Gangnam-gu Seoul Metropolitan Government D 1010. In order to introduce subordinate salespersons after joining a multi-level marketing organization, 20% of the lower sales amount as a recommendation allowance for the recruitment of subordinate salespersons, and 30% of the lower sales amount as a recommendation allowance if the lower sales organization joining the subordinate sales organization, 30% of the lower sales amount as the second sales organization, and 10% of the recommended sales amount as an allowance for the second sales organization, and 10% of the recommended sales organization’s sales amount as an agent-branch-head according to the sales performance of the subscribed sales organization, by explaining that the sales organization is able to make a lot of profits, including the receipt of KRW 3,600,000,000 as a multi-level marketing organization.

Accordingly, the Defendant carried on multi-stage business without registration, and had a multi-stage salesman purchase goods worth KRW 120,00 on the condition of multi-stage salesman registration and impose an excessive burden on the purchase of goods.

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