Compensation Target48% target
South Korea screening threshold marker: 35% statutory bonus ceiling.
Executive Diagnostic Tool
Global Regulatory Exposure Diagnostic
Test your compensation targets and cross-border fulfillment against non-negotiable statutory caps before initiating foreign expansion.
48%
20% (Low)
35% (Korea Cap)
65% (High)
Binary, Unilevel, or Matrix plans paying bonuses across 2+ levels.
Fulfilling orders via courier/postal mail without local sanitary notifications.
Jurisdictional Basis: Screening references include South Korea's Act on Door-to-Door Sales Article 20, China's State Council Direct Selling Regulation (Order No. 443) and Regulation on Prohibition of Pyramid Selling (Order No. 444), plus market-specific import and consumer rules. Verify current law before acting.
89%
Critical regulatory vulnerability detected across target markets.
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89%Exposure Index
Your selections intersect with statutory compensation limits and market-entry restrictions.
MODEL SIGNALS
What triggered the score
4active signals
Multi-Tier StructureON · Triggered
Structure-sensitive screening for high-restriction markets including Mainland China.
Cross-Border / NFRON · Triggered
Import, product-registration, customs and importer-of-record exposure.
EU Margin ReviewTriggered
High payout load can amplify VAT and local indirect-tax margin pressure.
Payout 48%Multi-tier YesNFR / Cross-border Yes
01 · TRIGGERED WARNINGS
Priority Regulatory Issues
These are screening signals based on the selected model inputs—not a legal opinion or launch clearance.
02 · REMEDIATION PATH
Recommended Next Actions
Use the triggered signals to prioritize the specialist workstreams that should be validated before launch.
XPAND GLOBAL // EXECUTIVE RISK REVIEW
Turn the warning signals into a market-entry plan.
Review the triggered risks, identify where restructuring may be required, and map the next market-specific diligence steps with Xpand Global.
Global Jurisdictional Radar
Selected market references using WFDSA 2024 retail-sales data alongside high-level regulatory screening. Verify current law before acting.
South Korea
Door-to-Door Sales Act, Article 20
$15.065B
WFDSA 2024
STATUTORY COMPENSATION LIMIT
35% Total Bonus Ceiling
Article 20(3) establishes a 35% ceiling on total bonuses as defined by the Act. Exceeding the statutory limit can result in regulatory sanctions and should be reviewed with qualified Korean counsel.
Mainland China
Order 444 (Chuanxiao Ban)
$15.546B
WFDSA 2024
HIGH-RESTRICTION MARKET
Multi-Level Remuneration Restrictions
China separately regulates licensed direct selling and prohibits defined pyramid-selling structures. Conventional multi-level remuneration should not be deployed onshore without current specialist review.
Malaysia
Direct Sales Act 1993
$10.197B
WFDSA 2024
PRE-LAUNCH LICENSING
AJL License Requirement
Direct selling activities in Malaysia are subject to licensing and anti-pyramid requirements. Launch sequencing and compensation design should be validated before field activity begins.