Five Multi-Level Marketing Companies Operating Illegally in Seoul Caught Despite COVID-19 Pandemic

Seoul Metropolitan Government Civil Affairs Police Unit Files Criminal Charges Against 10 Including Unregistered Business Owners
Proactive Investigations to Prevent COVID-19 Spread in Advance

[Asia Economy Reporter Jo In-kyung] The Seoul Metropolitan Government's Civil Affairs Judicial Police Unit announced on the 4th that it has identified and criminally charged five companies for illegally operating unregistered multi-level marketing (MLM) businesses despite the severe situation of the ongoing spread of the novel coronavirus infection (COVID-19).

To prevent the spread of COVID-19 infections and protect consumers from damage, the city has been operating a 'COVID-19 Investigation Task Force Team' composed of six professional investigators since July 24.

The five companies caught this time had been conducting MLM operations without registering with the relevant administrative authorities. The Civil Affairs Judicial Police Unit quickly obtained and executed search warrants from the court and is currently conducting investigations, the unit explained.

In Seoul, cluster infections of COVID-19 occurred at door-to-door sales and MLM companies such as Richway in Gwanak-gu and Muhan Group in May and September, as well as Daewoo Dioville in Gangnam-gu, resulting in hundreds of confirmed cases. Due to the nature of MLM businesses, many people gather in confined spaces, creating conditions vulnerable to COVID-19 infection. Moreover, a significant number of members are elderly with weakened immune systems, raising concerns about cluster infections.

However, despite warnings from the Seoul Metropolitan Government and quarantine authorities, some companies continued their business activities through business briefings and small meetings.

The Civil Affairs Judicial Police Unit also strengthened intelligence activities after COVID-19 cases were confirmed not only in illegal MLM companies but also in venues for fraudulent fundraising activities and cryptocurrency briefings. They identified one company conducting fraudulent fundraising by gathering citizens and referred the case to the local police station.

Furthermore, to strongly respond to illegal MLM companies that cause serious consumer damage and are a major factor in the spread of COVID-19 infections, continuous investigations will be conducted.

Park Jae-yong, head of the Civil Affairs Judicial Police Unit, said, "Unregistered MLM operations cause serious consumer damage, and since they are not members of compensation associations, victims cannot receive compensation." He added, "Especially, these illegal companies have a very high risk of causing COVID-19 cluster infections, so we ask citizens to be cautious."

This content was produced with the assistance of AI translation services.