The Korea Communications Commission is planning to release new guidelines for multi-level marketing for mobile phones within this week. The guidelines signify that multi-level marketing by domestic mobile carriers will be legalized in substance.
Since the implementation of the Terminal Distribution Structure Improvement Act, multi-level marketers in the industry have been forced to purchase terminals and subscribe to the mobile carriers’ calling plans before being paid for the subscribers that they attract. During the course, cases have been exposed where specific phones and more expensive calling plans are forced to be chosen. With regard to this issue, the Korea Communications Commission imposed a penalty of 2.3 billion won (US$2.0 million) on LG U+ in September. The new guidelines are to prevent such illegal practices.
In the meantime, the Fair Trade Commission started its own