While Korean dramas, delicious BBQ, and innovative cosmetics grab the spotlight, there’s another aspect of South Korea’s dynamic economy often overlooked: Multi Level Marketing.
Hence, it’s time to know more about the MLM opportunities in South Korea. This blog delves into the world of MLM, exploring some of the successful MLM companies in South Korea that have made their mark and discover the secrets behind their success.
Did you know?
According to the Korea Fair Trade Commission, Korea’s multi-level marketing sales for 2021 was $4.5 billion, up from $4.2 billion in 2020.
Top 10 MLM Companies in South Korea
No | Company | Year Founded | Products | Revenue (2022) | Founder |
---|---|---|---|---|---|
1. | Coway | 1989 | Purifiers | $2,900B | Yoon Seok-geum |
2. | Amway Global | 1959 | Health, beauty, and Home care products | $8.9 B | Jay Van Andel and Rich DeVos |
3. | Atomy | 2009 | Cosmetic, Personal care, Home care | $1,540B | Park Han-gill |
4. | Amore Pacific | 1945 | Cosmetics, Personal care, Health & wellness | $585B | Suh Sungwhan |
5. | RIMAN | 2018 | Skin care, Makeup, Body care, Hair care | $545B | Kyung Jung Kim |
6. | LG Household & Health | 1947 | Personal care, Home care, Cosmetics | $320B | Koo In-Hwo |
7. | Herbalife | 1980 | Health, Beauty, Hair care | $5.54 B | Mark R. Hughes |
8. | MOA Nutrition | 2012 | Nutritional drink | NA | Susana Sánchez Gómez |
9. | PurpleU | Skincare, Health supplements, Nutrition | NA | HO Kang | |
10. | Neora | 2011 | Skincare, Wellness products | $3.5B | Jeff Olson |
Key Players in South Korea’s MLM Industry
1. Coway
Established in 1989, Coway, headquartered in South Korea, specializes in the sales and service of water purifiers, along with air purifiers, and health appliance rentals. In 2022, the company achieved a revenue of $2,900 million, highlighting the continued success of direct selling companies in Korea. Coway’s commitment to quality is evident in their rigorous product testing and production processes, managed by their team of dedicated professionals. They take pride in the creation, testing, and production of their products, ensuring only the highest quality reaches their customers.
In 2017, Coway initiated the Happy Water Project trust, contributing to underserved communities’ access to clean water through the funds raised. Recognized for their industry impact, Coway secured the 79th position in the 2018 DSN Global 100 list.
2. Amway Global
Established in 1959, Amway has grown into a prominent global multi-level marketing company. It expanded its operations to South Korea in 1990, becoming a significant player in the MLM industry within the country. Amway Korea is recognized for having more than 450 unique product lines, encompassing health, beauty, and home care items. By 2019, just after its 60th anniversary, Amway achieved the distinction of being ranked as the world’s leading MLM company, securing the top spot on the Direct Selling News 100 list. In 2018, Forbes listed Amway as the 42nd largest privately held company in the United States.
As of 2011, the company has established a prominent presence worldwide, operating in over 100 countries and territories, including the Americas, Europe, China, Japan, Korea, and SE Asia/Australia. The top markets for Amway include China, Korea, the United States, Thailand, Taiwan, India, Russia, Malaysia, and Italy.
3. Atomy
Atomy, founded in 2009, a South Korean brand, has become synonymous with the beauty, skincare, and wellness industry that Korea is renowned for. The company introduces high-end cosmetics, personal care, and home care products to the market, including Color Food VitaminC, Healthy Glow Base, Mild Bubble Cleanser, among others. Atomy doesn’t limit its reach to Korea alone; it extends its offerings to the USA, Japan, Canada, Taiwan, Singapore, Cambodia, the Philippines, and Malaysia.
With plans for further expansion into Mexico, Vietnam, and Thailand, Atomy stands as one of the leading direct selling companies in Korea, achieving an impressive annual revenue of $1540 million in 2022.
4. Amore Pacific
Founded in 1945, Amore Pacific stands as one of the longest-standing multi level marketing companies in Korea. This brand focuses on botanical and nanotechnology skincare, cosmetics, and personal care products, boasting a portfolio of 33 health, beauty, and personal care brands. Noteworthy for its consistent growth, Amore Pacific achieved an annual revenue of $585 million in both 2021 and 2022.
Pioneering scientific discoveries, Amore Pacific was the first to uncover the positive effects of green tea on the skin and remains the only beauty company globally to cultivate its own green tea ingredients. In the 2018 DSN Global 100 list, Amore Pacific secured the 35th position, underscoring its influential presence in the industry.
5. RIMAN
RIMAN was founded in the year 2018 with its headquarters in South Korea. Despite being one of the youngest direct selling companies in Korea, it has witnessed gradual and consistent growth achieving $538 million in revenue in 2021 and $545 million in 2022 respectively. Specializing in skincare, makeup, and body care products, RIMAN effectively serves a diverse global customer base.
Similar to other direct selling companies, RIMAN relies on a network of distributors for the sale of its products. In the DSN 2023 Global 100 List. In 2022, Riman took a noteworthy step on the global stage by expanding Riman, Inc. in the United States. This strategic move aimed to explore new markets and reach an international expansion.
6. LG Household and Health
Founded in the year 1947, LG household and health is based in South Korea. Despite being one of the oldest direct selling companies in Korea, the brand still maintains its growth steadily marking an annual revenue of $320 million in 2021 and 2022. The brand that deals with personal and home care is a customer favourite for the range of choices and products they offer.
LG H&H has expanded its reach globally, establishing a presence in the US, Malaysia, Vietnam, China, Japan, Canada, Singapore, Thailand, and the UK. Ranked 54th in the 2018 DSN Global 100 list, LG H&H also earned a place on Forbes’ “Asia’s 200 Best Over A Billion” list in 2019, within the cosmetics/personal care industry.
7. Herbalife
Established by Mark R. Hughes in 1980, the global health and wellness community of Herbalife is dedicated to empowering individuals to lead their best lives. With a rich history spanning over 40 years and a presence in more than 90 countries, Herbalife has become a beacon of support for personal well-being. The company’s commitment to innovation is underscored by a personalized approach, collaborating closely with Herbalife Independent Distributors who offer valuable insights into customer preferences and needs.
In 2022, Herbalife solidified its position as a global leader, claiming the title of “The #1 brand in the world in meal replacement and protein supplements combined”, as well as “The #1 brand in the world in active and lifestyle nutrition.” With a remarkable suggested retail value of $8.8 billion and $5.2 billion in net sales, Herbalife continues to thrive, providing top-notch products that contribute to a healthier and more vibrant lifestyle for individuals worldwide.
8. MOA Nutrition
Headquartered in South Korea, MOA Nutrition nutritional drink company boasts a product lineup featuring, MOA super nutrition blend, omega-Q, optimal-V, and magnical-D. Although detailed product information is not available on their website, the company emphasizes its commitment to “World innovation for you” and positions itself as “The Opportunity Company” while proudly proclaiming to be “Mother Nature’s 8th wonder of the world.”
The brand, affiliated with Ariix, a producer of Nutrifii, positions itself as a pioneer in the realm of superdrinks, introducing a new category with powerful ingredients carefully selected for optimal synergy. Their mission revolves around providing longevity, health, and welfare quality, exemplifying a dedication to delivering innovative and transformative wellness solutions to a global audience.
9. PurpleU
PurpleU is a dedicated provider of Korean Beauty Care and Nutrition products, placing a strong emphasis on sustainability and natural ingredients. Their product range spans sanitary products, skincare items, and health supplements, featuring offerings such as Skin Deep Galvacare, Baobab Face Cleanser, Face Oil, and more. With a commitment to promoting the well-being of individuals, PurpleU started with a vision to support entrepreneurial women, particularly mothers worldwide. Central to their mission is the belief that hope is the fundamental key to success in family, life, and career.
In alignment with their values, PurpleU draws inspiration from the vibrant colors of a rainbow, symbolizing equality, hope, and peace. This ethos reflects their commitment to not only delivering high-quality beauty and nutrition products but also fostering a sense of empowerment and positivity among their community, resonating with individuals pursuing both personal and professional success.
10. Neora
Headquartered in Addison, Texas, Neora is a leading global relationship marketing company that specializes in offering innovative, proprietary skincare and wellness products designed to combat the effects of aging. Since its inception in August 2011, Neora has been dedicated to the mission of Making People Better, achieving remarkable sales milestones and earning recognition within the industry. The company expanded its reach internationally, successfully launching in South Korea in 2016 and subsequently entering markets in Canada, Mexico, Australia, Japan, Hong Kong, Colombia, New Zealand, and Singapore.
Neora’s commitment to excellence is underscored by its recognition as a Direct Selling Association 2017 Top 20 Award recipient and securing the 23rd position on the prestigious Direct Selling News’ North Amrica Top 50 List. The company’s outstanding achievements, such as receiving the Bravo Award, exemplify Neora’s commitment to making a positive impact on people’s lives through its transformative products and business model.
Read More: Automate recruitment and retention with MLM recruiting software
Did you know?
MLM reportedly employs over 7.3 million sellers/distributors as of December 2021, which is down from 8 million in 2020 due to duplicate registrations and inactive sellers.
Direct Selling Industry in Korea – Category Wise Sales
Korea significantly influenced the global sales landscape in the household goods and durables sector, contributing 33% of the total annual sales. Following closely were the wellness and cosmetics/personal care sectors, contributing 23% and 22%, respectively.
Moreover, Korea’s direct selling sector stands out for its impressive women participation, with over 80% of active women participants – a consistent increase compared to previous years. These statistics underscore the evolving dynamics of the industry in the Korean region, with its continued success yielding promising contributors to the global direct selling companies.
The Future of South Korea’s MLM Industry
In South Korea, the MLM industry stands at a crossroads, navigating the delicate balance between a significant presence and potential challenges. The current state of the industry showcases its widespread influence, but there’s a tension arising from evolving regulations and shifting consumer trends. As the government considers tightening its grip on MLM operations to combat pyramid schemes and fraudulent activities, the industry faces the crucial task of adapting to these regulatory changes. Simultaneously, the changing preferences of consumers, especially among Gen z generations, towards transparent and ethical business practices pose a challenge for traditional MLM models.
The future of MLM in South Korea hinges on its ability to navigate these key factors successfully. Stricter regulations aimed at eradicating pyramid schemes might force the industry to undergo substantial changes, demanding a shift towards more sustainable and ethical business practices. In parallel, the rising demand for transparency and ethical conduct among consumers, particularly the tech-savvy younger demographic, requires MLM businesses to revamp their strategies.
The industry’s survival and success in the future will depend on its capacity to adapt, embracing these shifts in both regulations and consumer preferences. To secure its place in the evolving market, Korean MLM must not only address present challenges but also proactively evolve, ensuring a sustainable and ethical foundation for its future growth.
Did you know?
The direct selling industry retail sales in South Korea was approximately 18.48 billion U.S. dollars in 2022, which is a decrease compared to the previous year.
In a Nutshell
While exploring the landscape of MLM companies in South Korea in 2024, it is evident that it is a dynamic and competitive industry. The list of MLM companies continues to evolve, with businesses adapting to market trends and consumer demands. As we’ve highlighted the top MLM companies in South Korea for 2024, it’s clear that the direct selling sector plays a significant role in the country’s economy.
Stay informed, delve into the specifics of each company, and make well-informed decisions as you navigate the diverse world of multi-level marketing in South Korea.