119 MLM Companies Registered in Q2... "Caution Advised for Companies with Frequent Name or Address Changes"

Key Updates for the Second Quarter

In the second quarter of this year, a total of 119 multilevel marketing (MLM) companies were registered in Korea, according to recent data. The Fair Trade Commission (FTC) has cautioned consumers to exercise special care when dealing with MLM companies that frequently change their names or addresses. Concerns about consumer harm have been raised, as there have been cases in which companies changed their names and addresses as many as five times over the past three years, leading to issues such as not issuing contracts or preventing contract cancellations.

Six New Registrations, Three Closures: Total Registered Companies Now at 119

According to the 'Key Information Changes for MLM Operators in the Second Quarter of 2026,' released publicly by the FTC on July 22, there were 119 MLM companies registered as of the end of June this year. During the second quarter, there were 21 changes: six new company registrations, three closures, and 12 cases of name or address changes.

The newly registered companies are Natura Vitalis Korea, XFigures, APIAM, NLEast Asia, The Elion, and Future Health Korea. These six companies have each executed consumer compensation guarantee contracts with either the Korea Special Sales Financial Cooperative or the Korea Direct Selling Association and completed official registration with the respective local government agencies. On the other hand, Gold Tree Global, Meta Twenty-One Global, and Gemma Korea reported closures.

'Aura Partners' Changed Five Times in Three Years: "Caution on Companies With Frequent Changes"

The FTC particularly warned that transactions with companies that frequently change their names or main offices may expose consumers to unexpected risks. In fact, there was one company identified in the past three years (from Q3 2023 to Q2 2026) that changed its name or address more than five times: Aura Partners LLC. During this period, the firm changed its name three times (from ByDesign Korea to JV Global, to Korea Pripe, to Aura Partners) and its address twice.

An FTC official stated, "When dealing with companies that often change their names or addresses, there is a higher risk that the company may cut off contact or evade liability when a refund is requested, making the refund process more difficult."

The FTC also outlined key precautions to prevent harm when engaging in transactions with MLM operators. Even when a contract is concluded through an acquaintance, a formal contract must be issued. When making payments, consumers must receive and keep the 'guarantee number notification' issued by the company or the guarantee association. Only with this notification can consumers obtain direct compensation through the association, even if the company refuses to honor a refund.

Furthermore, even if a company has not reported its closure to the local government, if its guarantee contract or other consumer compensation insurance is canceled, it can no longer conduct legitimate business, and transactions should be avoided. The refund period is within 14 days of purchase for consumers, and within three months for MLM distributors.

The FTC emphasized, "If a company promises to pay support bonuses in excess of 35% of sales or exhibits other characteristics of illegal MLMs, or refuses to provide a written contract, you should refuse to sign up." The commission also urged, "If you suspect illegal activity, please report it immediately to the FTC homepage, the relevant police station, or the guarantee association."

This content was produced with the assistance of AI translation services.