All the appeals by the prosecutor are dismissed.

Summary of Grounds for Appeal

(In fact-finding or misunderstanding of legal principles) Defendant H Co., Ltd. (hereinafter “H”) recommended that the consultant may receive support allowances as well as retail profits when he/she goes to a partner or higher position. As such, the consultant is a multi-level marketing salesperson under the former Door-to-Door Sales, etc. Act (wholly amended by Act No. 11324, Feb. 17, 2012; hereinafter “former Door-to-Door Sales Act”), and the H sales organization, including the consultant, constitutes a multi-level marketing organization.

Even if the consultant is not a multi-level marketing salesperson, the partner received goods, etc. from H which is a multi-level marketing business operator and sold or supplied them to the consultant. The partner's selling of goods, etc. to the consultant is a multi-level marketing act meeting consumer requirements under the former Door-to-Door Sales Act. Thus, at least the partner's sales organization is a multi-level marketing organization with the stage of not less than three stages of the salesman's subscription.

Nevertheless, under the premise that H is not a multi-level marketing organization, the judgment of the court below which acquitted all of the facts charged of this case is erroneous in misconception of facts or misapprehension

Facts of recognition

According to the evidence duly adopted and examined by the court below and the court below, the following facts are recognized.

Defendant A’s status as the Defendants is H’s representative director (12%). Defendant B, as the internal director (16%) of H, is the chief executive officer in charge of overall management of the steering committee composed of the highest sales cause O, S,OWER SOCETY, 35 regional headquarters, and the head of the center. Defendant C is the representative director of H (12%). Defendant D is the representative director of H (12%) and the auditor (16%). Defendant A is the H’s OS and the internal director (16%) holding shares. Defendant E is the head of Busan headquarters.