Defendant

A shall be punished by imprisonment with prison labor for a year and six months and by a fine of twenty million won.

Defendant

B and D shall be punished by imprisonment with prison labor for one year and by fine 1.

Punishment of the crime

Multi-level marketing entities shall be registered with the Fair Trade Commission or the Special Metropolitan City Mayor, Metropolitan City Mayors, Metropolitan Autonomous City Mayors, Do Governors and Special Self-Governing Province Governors

1. Despite Defendant A, Defendant B, Defendant C, and Defendant D, around July 14, 2015, Defendant A operated a company selling functional clothes with the trade name “stock company E” from the 18th floor of the F Building of Geumcheon-gu Seoul Metropolitan Government, Geumcheon-gu. In selling women’s functional clothes, Defendant A recommended that the whole or part of the consumers would be able to gain certain profits if they were assistant multi-stage salesmen, and was willing to gain profits through a multi-stage sales organization in which the consumers joined the sales organization in consecutive order and phased out. Defendant B intended to manage the product and the business sector as internal directors of the above company and plan and operate the allowance system.

From October 2015, Defendant C and Defendant D continued to take charge of education, such as product description, business explanation, and introduction of allowances system to the salesperson as an “educational director” in the above company from around October 2015. Defendant C and Defendant D decided to take charge of soliciting salespersons as a whole.

Accordingly, if the defendants conspired to purchase 50 functional clothes manufactured by the above company, the qualification of the head of the headquarters (the above head of the headquarters) shall be granted, and if 50 functional clothes are purchased through the introduction of the above head of the above superior headquarters, the qualification of the head of the headquarters (the "head of the headquarters") shall be granted, the upper head of the headquarters shall evaluate the sales performance with the lower head of the headquarters as a group and evaluate the sales performance with the lower head of the headquarters as a group, and if the upper head of the headquarters satisfies certain criteria, he/she shall be paid one allowance up to 80,000 won. At least two persons each month by the upper head of the headquarters, the higher head of the headquarters shall be qualified as the head of the headquarters, and the lower head of the headquarters shall be higher than the lower head of the headquarters.