119 multi-level marketing firms active in Q2, Fair Trade Commission urges contract checks

Six multi-level marketing companies newly registered and three shut down in the second quarter of this year, the Korea Fair Trade Commission said.

The Fair Trade Commission released its "Second Quarter 2026 Key Information Changes for Multi-Level Marketing Operators" on Wednesday.

As of the end of June, 119 companies were registered as multi-level marketing operators. A total of 21 changes were recorded during the quarter, including six new registrations, three closures and 12 changes of company name or address.

Natura Vitalis Korea, Xpiggers, APIM, NL East Asia and The Elion each signed mutual aid agreements with the Korea Special Sales Mutual Aid Association before registering, while Future Health Korea signed with the Direct Selling Mutual Aid Association before completing its registration.

The three companies that closed were Gold Tree Global, Meta 21 Global and Gemma Korea. No companies filed for suspension of business during the quarter, and none canceled their mutual aid agreements before filing for closure.

The Fair Trade Commission cautioned that multi-level marketing operators whose consumer damage compensation insurance — including mutual aid agreements or debt payment guarantee contracts — has been terminated cannot conduct normal business, and urged consumers to exercise particular care when dealing with such firms.

One company, Aora Partners, was found to have changed its name or address five or more times over the past three years — specifically, three name changes and two address changes during that period.

The commission said consumers and prospective sales representatives must verify a company's registration status and whether it has suspended or ceased operations before entering into any transaction or joining as a sales agent. It added that companies with frequent changes to their name or business address pose a heightened risk of unexpected harm, such as difficulty obtaining refunds, and that consumers should proceed with caution.

The commission also said consumers must obtain a written contract whenever entering into a purchase agreement with a multi-level marketing operator and check in advance whether the contract contains any unfair terms. It warned that some companies induce payment without issuing a written contract, then deliberately obstruct cancellation requests or delay refunds.