Defendant

A Imprisonment for eight months, Defendant B shall be punished by a fine of 5,000,000 won.

except that this judgment.

Punishment of the crime

Defendant

B Co., Ltd. is a corporation with a seminar room in the fourth floor of the Gangnam-gu Seoul Metropolitan D building, a central hole in the first floor of the Gangnam-gu Seoul, Gangnam-gu, Seoul, with the purpose of selling cosmetics and biochemical items, and the defendant A is the actual operator of the representative director of the corporation B.

Multi-level distributors shall register their branch offices with the Fair Trade Commission or the Special Metropolitan City Mayor Special Self-Governing City Mayor.

1. From July 5, 2017 to February 28, 2018, the Defendant divided the sales clerks into three or more levels, such as members, first failures, and second failures, into three or more, and then, the member purchased goods with the registration of the above business; “the first failure” was a person who achieved sales cumulative 2,500 PV (the standard points assigned to interest-based products that were voluntarily determined by the company; “the second failure” was divided into six-month cumulative 10,500 PV sales or monthly cumulative 3,500 PV sales; “the member” was paid KRW 20-70 PV sales of purchased goods with the total amount of KRW 50-70,00 sales of KRW 20,000; “the member” was paid with KRW 30-20,000 sales of the purchased goods with KRW 40,000,000 for KRW 27,000,000,000.

Accordingly, the defendant established and operated a multi-level marketing organization without registering a multi-level distributor to the competent authorities.

2. Defendant B, the Defendant, at the time and place described in paragraph 1, committed a violation as described in paragraph 1 in relation to the Defendant’s business.

Summary of Evidence

1. Defendants’ respective legal statements

1. Each police statement made to F, G, and H 1.