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South Korea's number of multi-level marketing (MLM) firms dropped to 122 in 2020 from 130 a year earlier, representing a turnaround from the uptrend in the wake of the pandemic, according to the Fair Trade Commission (FTC).
The FTC said the 2020 decrease was due to stricter social distancing measures, resulting in fewer person-to-person marketing activities.
The 122 MLMs registered a combined sales of 4.99 billion won last year, down 4.65 percent from 2019.
The number of sales personnel in MLM companies was at 8.27 million as of 2020, down 0.83 percent from 2019.
The FTC has been regularly posting reports on MLMs since 2006 to alert consumers of possible problems as some companies were found to have exploited members and were viewed to be involved in illegal pyramid schemes.
