The judgment of the court below is reversed.

Defendant shall be punished by a fine of three million won.

The above fine shall not be paid by the defendant.

1. Summary of grounds for appeal;

A. Fact-misunderstanding ① As to the violation of the former Door-to-Door Sales Act among the facts charged in the instant case, the Defendant did not have organized, managed, or operated a multi-level company.

② As to the fraud of the facts charged in the instant case, the Defendant did not have any intention to deception.

Nevertheless, the judgment of the court below convicting each of the above facts charged is erroneous as a matter of law.

B. The punishment sentenced by the lower court (an amount of five million won) is too unreasonable.

2. Determination

A. We examine the argument of mistake of facts. The following circumstances acknowledged by the evidence duly adopted and investigated by the court below, namely, that: (i) E made a statement to the effect that “the Defendant is the head of the Daegu Center of D Co., Ltd.” from the investigative agency to the court of the court below (see, e.g., Supreme Court Decision 58No. 419, 437, 438, etc. of the trial record); and (ii) the Defendant also made a statement at the investigative agency to the effect that “the head of the Daegu Center of D is the head of the Gu in D; Provided, That he/she does not have any profits acquired during the period of his/her participation and the number of victims until the number of victims reaches the court of the court of the court below (Evidence No. 1, No. 434 of the evidence record No. 434); (iii) the Defendant explained and recommended the victims to make an investment (Evidence No. 5, No. 237 of the evidence record).

In light of the fact that the Defendant makes a statement in the direction to reduce its responsibility as stated in the “Public Trial Records (No. 74 pages)”, it is difficult to believe it as it is, and (5) the Defendant explained to the investors that “The Defendant will pay a total of 6 million won per share of KRW 500,000 per share of KRW 3.3 million per share of KRW 3.3 million.” In the instant case where it is agreed that the subsequent investor will pay high profits within a short period of time, the principal of the investment and the investment profits will be paid unless there is any subsequent investor.