Three Companies Including Renewedi Shut Down... Two New Entries

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The Korea Fair Trade Commission disclosed the major information changes of multi-level marketing (MLM) businesses for the first quarter of this year on the 23rd.

As of the end of March, there are 121 registered MLM companies. Although 2 companies newly registered, 3 existing companies closed down, resulting in a decrease of 1 company compared to the previous quarter (122 companies).

The two newly registered companies are The Hana In and Liwei Korea. The Hana In signed a compensation contract with the Korea Special Sales Compensation Association, and Liwei Korea signed a consumer damage compensation insurance contract through a debt payment guarantee contract with Shinhan Bank and registered newly with the relevant city/province authorities.

MLM businesses are required to sign compensation contracts with compensation associations or consumer damage compensation insurance contracts such as debt payment guarantee contracts with banks or insurance companies to compensate consumers for damages.

During this period, three MLM companies?Renewmedi, Afield, and Big Sky Global?closed down, and one company, Cosmos G, temporarily suspended operations. As of the end of last month, two companies, Ai Ya Union and Terasta, have changed their business names or addresses four or more times in the past three years.

The Fair Trade Commission discloses major information changes of MLM businesses every quarter to prevent consumer damage caused by MLM sales. MLM businesses whose consumer damage compensation insurance has been canceled cannot operate normally.

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