Back in the 1990s, I had a close friend who joined a multi-level marketing organization, a rather large one. One of the things she told me was that the company was experiencing strong growth overseas, in places like South Korea. Perhaps there is a connection to an anecdote that Barbara Demick tells in her book Nothing to Envy. The book recounts the recent economic implosion of North Korea through the lives of six defectors. And so maybe it can shed some light on one of the engines of that MLM growth.
Although South Korea did not expressly encourage defections, those that made it into the country could qualify for acculturation training and a generous one-time payment. But North Korean emigrés often remained naive about matters economical, starting with basics like how to balance a checkbook. Demick’s pseudonymous Dr. Kim, formerly a physician in the North Korean system, learns a hard lesson:
In March 2002, Dr. Kim arrived at Incheon Airport, euphoric at the prospect of of starting a new life. But these feelings did not last long. Dr. Kim was convinced by a man she met at church to invest most of the $20,000 resettlement in a direct sales operation in which she was supposed to peddle soap and cosmetics to acquaintances. Dr. Kim hadn’t learned enough in her month of orientation… she lost nearly all of the government stipend. (p. 259)