[Defendant A] The defendant shall be punished by imprisonment with prison labor for one year

However, the above sentence shall be executed for a period of two years from the date this judgment became final and conclusive.

Punishment of the crime

1. Defendant A is the representative director of Gangnam-gu Seoul Metropolitan Government D and B (hereinafter “B”) in accordance with subparagraph 1 of Article 1311.

No person shall engage in any act of practically engaging in financial transactions by pretending the transaction of goods, etc. in the manner of paying sponsor allowances, using a multi-level marketing organization or any similar organization comprised of persons who have joined a multi-level marketing organization or any similar organization, while selling goods, etc. at a price significantly higher than ten times the acquisition price.

Nevertheless, Defendant 1: (i) from November 18, 2015 to February 28, 2016, when recruiting salespersons from the above office through presentation meetings, telephone consultation, etc., Defendant 1 purchased one cosmetic product (the acquisition price of 10,000 won or less) of B from the above office 390,000 won; (ii) from the above office 70,000 won per unit to the above 10,000 won; (iii) from the above 80,000 won per unit to the above 10,000 won, 10,000 won per unit to the above 10,000 won were paid to the above 10,000 won; and (iii) from the above 10,000 won per unit to the above 20,000 won, 10,000 won per unit to the above 20,000 won per unit; and (iv) from the above 20,0106,000.

Accordingly, the defendant is a multi-level marketing organization or similar step by step.