Purpose of Establishment

MAC&CO has been established by the Fair Trade Commission's approval to compensate and prevent a consumer from damages.

Door-to-Door Sales, etc. Act(DDSA) Acticle 37

A MLM Company that wishes to register under Article 13, Paragraph 1 shall enter into each of the following contracts ("consumers' compensatory damage insurance contract, etc.")

1. Insurance contract to compensate consumers for damages

2. Payment guarantee agreement with a financial institution to guarantee compensation for damages to consumers; and

3. Mutual aid contract with a mutual aid association established under Article 35

Door-to-Door Sales, etc. Act(DDSA) Acticle 38

A company which was reported under Article 5 or registered under Article 13 may, upon obtaining approval from the Fair Trade Commission, set up a mutual aid association in order to engage in mutual aid business under Article 37, Paragraph 1, Item 3, such as insurance business to cover the liability to pay compensatory damages to consumers. The criteria for approval of such mutual aid association shall be determined by the Presidential Decree.

MAC&CO Acticle of incorporation-Article 2 Purpose

The purpose of the Cooperative is to act as a Mutual Aid Society which provides necessary mutual aid and financing for the sake of damage compensation of consumers and to allow for the independent economic activity and enhancement of the economic status of the cooperative members and to contribute to the development of the Special Selling Business.

Accordingly, any person who wants to operate a MLM Company has to make a consumer damage insurance contract. MAC&CO has dealt with 20 billion won for compensation payment since its establishment. MAC&CO leads the way of encouraging compliance through the task of corporate evaluation and mutual aid risk management. It will enforce corrective measures and serious penalties in case of illegal and fraudulent behavior.

The foremost function of MAC&CO is to provide consumer indemnity, but furthermore we are doing our utmost to prevent consumer damage through supporting transparent management.