Court says multilevel investment returns are interest income, subject to tax

A court has ruled that profits earned from investing in a multilevel marketing company qualify as interest income rather than business income, making them subject to comprehensive income tax. According to a report by Yonhap News Agency reporter Lee Seung-yeon, the court classified the returns not as income from business activity but as interest income. The case concerns which income category should apply to money received through investment in a multilevel company. As a result, the investor who earned the returns must pay comprehensive income tax. The ruling underscores that the substantive nature of income matters in tax classification. Source: yna.co.kr