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The judgment of the court below is reversed.
Defendant
A shall be punished by imprisonment with prison labor for a year and six months, and by imprisonment with prison labor for a year.
Reasons
1. The decision of the court below which acquitted the Defendants of the fact that the Defendants had operated a multi-level marketing organization without registration is erroneous in the misapprehension of legal principles as to the grounds of appeal.
2. Determination
A. Article 2 Subparag. 6 of the Door-to-Door Sales Act (hereinafter “Door Sales Act”) defines “multi-level sales business entity” as “a person who establishes, manages, or operates a multi-level sales organization to run multi-level marketing business;” “multi-level sales business entity” as “a person who has joined a multi-level sales organization as a salesman;” and Article 2 Subparag. 5 of the Act defines “multi-level sales organization” as “a person who has joined a multi-level sales organization;” and there is a recruitment method for soliciting a person who belongs to a sales business entity to join a specific person as a subordinate salesperson of the relevant sales organization;
(b) A person who is admitted to a salesperson specified in item (a) as one-class salesperson (a), without being solicited by any other salesperson, shall be classified as one-class salesperson;
hereinafter the same shall apply) more phased than
(b) shall include cases prescribed by Presidential Decree, where the salesperson’s stage is not more than two levels, but is actually managed and operated at least three levels;
C. It is defined as a sales organization that satisfies all the three requirements, “a sales organization that has the method of paying a sponsor’s allowance falling under subparagraph 9(b) or (c) to the salesperson.”
As such, the Door-to-Door Sales Act separates multi-level sales salespersons from multi-level sales business operators, and Article 13(1) provides for multi-level sales business operators with the following documents, and Article 13(1) provides for "multi-level sales business operators shall register with the branches of the Fair Trade Commission or the Special Metropolitan City Mayor, Metropolitan City Mayors, Metropolitan Autonomous City Mayors, Do Governors, Do Governors, and Special Self-Governing Province." Article 14 provides that any individual or corporation falling under any of the following subparagraphs shall not register with the branch offices of the Fair Trade Commission or Special Metropolitan City