Five Multi-Level Marketing Companies Closed in Q2... Clear Decline Observed

[Asia Economy Sejong=Reporter Dongwoo Lee] In the second quarter of this year, five multi-level marketing (MLM) companies closed down, while three new operators registered.

According to the Fair Trade Commission's "Major Information Changes of MLM Sellers in the Second Quarter" on the 23rd, the total number of registered MLM sellers as of the end of June was 121, which is two fewer than the previous quarter.

The number of MLM sellers peaked at 136 companies in the first quarter of last year, then decreased to 130 in the second quarter, 128 in the third quarter, 125 in the fourth quarter, and 123 in the first quarter of this year. In the second quarter of this year, the number further decreased by two, with 121 companies registered with the relevant city or provincial governor.

Allnature, ByDesign Korea, and Woori Commerce newly registered. Among them, Allnature and ByDesign Korea signed indemnity contracts with the Korea Special Sales Indemnity Association. Woori Commerce signed a debt payment guarantee contract with Shinhan Bank (Dongtan Station Financial Center).

Newborn World, The Workers, Luan Korea, Global Platform Solution, and Canvas Korea closed their MLM businesses and all terminated their indemnity contracts with the indemnity association.

Additionally, Amicogen Pacific changed its trade name to "AP," and Wieop Global changed to "Valunique." Including AP and Valunique, a total of nine companies, such as Niora Korea, Big Sky Global, and AddThat, relocated their business addresses.

According to Article 13 of the "Act on Door-to-Door Sales, etc.," MLM sellers must report any changes in registration details such as trade name and address to the relevant city or provincial governor within 15 days. Especially for businesses that frequently change their trade names or main business addresses, there is a possibility of unexpected consumer damage such as difficulties in refunds, so careful verification is necessary.

A Fair Trade Commission official explained, "If you are dealing with MLM sellers or intend to work as an MLM salesperson, it is essential to check whether the operator is registered as an MLM seller, as well as their suspension or closure status and major information changes, to prevent damage."

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