The Official Korean Skincare

Published: January 31, 2025, 10:00 AM

Summary in Three Lines
Reporter: Lee Dae-hee

• The Fair Trade Commission (FTC) disclosed key changes in information for multi-level marketing (MLM) companies.
• In Q4 of last year, six new MLM companies were registered while four closed, leaving a total of 121 registered companies as of the end of December.
• The FTC advises consumers to carefully check registration status and frequent changes in business names or addresses.

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(Sejong = Yonhap News) Reporter Lee Dae-hee –
In the fourth quarter of last year, six new multi-level marketing (MLM) companies were established, and four went out of business.

On the 31st, the Fair Trade Commission (FTC) released the “Key Information Changes of MLM Companies for Q4 2024.”

As of the end of December 2024, there were 121 registered MLM companies. During the fourth quarter, six were newly registered, and four were closed. Additionally, there were 13 cases of changes in company name, address, or consumer damage compensation insurance.

The companies that closed include Ecofriend, CN Communication, Brain Group, and B&Hive.

Five newly registered companies—Insan Healthcare, Celeb Korea, NGN, Hadams, and Metawell Korea—signed consumer damage compensation insurance contracts with the Korea Special Sales Financial Cooperative. Liman Korea registered via a contract with the Direct Selling Financial Cooperative.

The total number of registered MLM companies has been gradually decreasing. From 144 in 2017, the number dropped to 118 in 2022, slightly increased to 122 in 2023, and declined again to 121 in 2024.

Some companies have changed their names or addresses more than five times over the past three years.

For example, “Aiya Union” used to operate under the names “LSPeople” and “AiyaPet” before adopting its current name. It also changed its address three times.

Another company, “Terasta,” changed its name to “A3 Global” and then back to its current name, with four address changes during the process, according to the FTC.

An FTC official advised:
“When working with MLM businesses, it is crucial to verify whether the company is registered and whether it is currently active or closed.
In particular, companies that frequently change names or main office addresses may pose a higher risk of unexpected problems such as difficulty in obtaining refunds, so consumers should be especially cautious.”