All appeals by the Defendants are dismissed.

1. Summary of grounds for appeal;

A. Erroring the facts (Defendant 2, 5-9) merely performed his duties as the representative director or a general business operator, and did not participate in the sales activities of N (hereinafter “N”). Therefore, the above Defendants cannot be found to have a conspiracy or criminal intent with respect to the act of multi-level marketing in violation of the Door-to-Door Sales Act (hereinafter “Door Sales Act”).

B. The misapprehension of the legal doctrine (the Defendants) did not join all or part of the consumers as a salesman due to no condition attached to the joining of the salesman, and only paid various bonuses to the salesman and did not encourage retail profit. Therefore, the form of sales by N does not constitute multi-level marketing under the Door-to-Door Sales Act, and thus, it cannot be deemed that N is a multi-level marketing business entity that requires registration under the Door-to-Door Sales Act.

C. Unreasonable sentencing (the sentencing of the Defendants on the first instance trial as to the Defendants is too inappropriate).

2. The judgment of this Court

A. According to the evidence duly admitted and examined by the first instance court and the first instance court, N may recognize the fact that sales have occurred through the recruitment of its members in the following manner:

① The N recruited new members through recruitment activities of existing members, and only prepared an application for membership without any separate condition, such as purchase of goods, as at the time of member membership, and such membership has been made in a successive and phased manner, and the structure of members has been formed at least three stages.

② If a new member of N purchases M 1 330,00 won from N, 10,000 won, the remainder of 200,000 won other than product cost (100,000 won) and value-added tax (30,000 won) shall be converted into BV and 10% (20,000 won) out of them shall be converted into 20,000,000 won as recommendation allowances, and up to 35% by class (70,00 won) of them shall be the sales right allowances.