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How to obtain MLM license in Korea

How to Get MLM License in Korea

In order to establish and operate an MLM company in Korea,
The company must have an MLM License.

The period for which the MLM license is issued within 30 days at the earliest and 60 days at the latest after application.

In order for a company to obtain an MLM license,
it must conclude a Mutual Aid Contract with MACCO (Mutual Aid Cooperative Consumer).

Mutual Aid Contract Procedure for MLM License
Concerning indemnification for consumer damage, MLM companies are required to provide a deposit and mutual aid fee based on the rate set by the mutual aid regulations of the mutual aid cooperative on the sales amount subject to mutual aid. They must also sign a contract for consumer indemnity insurance with the cooperative prior to commencing operations.

For a new company that intends to undertake an MLM operation, the rating committee strictly evaluates the company’s eligibility for joining the cooperative in accordance with the cooperative’s mutual aid regulations, including an assessment of the financial soundness and deliberation on standards for paying support allowances.

Specifically, the cooperative examines financial factors and ascertains whether the applicant holds a minimum level of available assets for operating an MLM business, as well as thoroughly reviews other qualifications including standards for paying support allowances. By doing so, it focuses on the determination of whether or not any potential violations of the current DDSA are apparent in the business practices of the company applying for admission to the cooperative.

The purpose of such assessment is to eliminate any potential unlawful elements prior to proceeding to make a contract by filtering through applications for mutual aid contracts to prevent insolvent firms from entering the market and by thoroughly verifying that prospective member companies meet capital requirements and maintain appropriate standards for the payment of support allowances.

Korea Direct Consulting Group has professional knowledge and experience in MLM license issuance, so we can help you get it issued within a short period of time.

Korea Direct Consulting Group
email : bushkim@naver.com
Address : 30F Asem Tower, 157 Youngdongda-ro, Gangnam-gu, Seoul Korea.

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