South Korea has given Polymarket an opportunity to defend its operations before regulators decide whether to seek corrective action over concerns that the prediction market platform may violate the country’s gambling laws.
Summary
- South Korean regulators will hear Polymarket’s response before deciding on possible corrective action.
- Authorities are reviewing whether the platform’s prediction markets violate the country’s gambling laws.
- The review follows an earlier police investigation into South Korean Polymarket users over alleged illegal gambling.
The Broadcasting, Media and Communications Review Committee said on Monday that it will hear Polymarket’s explanation before reaching a final decision on a corrective request tied to the platform’s legality and service model. According to a machine translation of the committee’s statement, regulators decided to allow the company to present its position so they could fully examine both the legal status of Polymarket and how its services operate.
Rather than issuing an immediate recommendation, the committee said it wanted to verify whether the platform’s activities fall within South Korea’s legal framework governing online gambling-related services. The review could determine whether authorities proceed with corrective measures against the platform.
Regulators are reviewing whether Polymarket violates gambling laws
South Korea’s National Gambling Control Commission Act classifies illegal gaming businesses as services that facilitate speculative gambling over the internet. The law also gives regulators authority to identify, monitor, and respond to businesses that may fall into that category.
As part of that review, authorities are assessing whether Polymarket’s prediction markets comply with domestic regulations. The committee’s decision to seek the company’s response comes before any final enforcement recommendation is made.
Outside South Korea, Polymarket already limits access in multiple jurisdictions. According to the company, users in 33 countries cannot access its platform, including the United States, the United Kingdom, France, Germany, Brazil, Singapore, Japan and Australia. Polymarket says those restrictions are designed to comply with sanctions, local financial regulations, gambling and prediction market laws, anti-money laundering requirements and Know Your Customer rules.
The company also blocks access in selected regions within otherwise supported countries, including Alberta, British Columbia, Ontario and Quebec in Canada, along with Crimea, Donetsk and Luhansk in Ukraine.
Authorities have expanded scrutiny beyond individual users
Attention from South Korean authorities has increasingly moved beyond local users to the platform itself. The latest review follows an earlier criminal investigation involving South Korean users who allegedly participated in election-related prediction markets that authorities considered illegal gambling.
On June 5, the Gangwon Provincial Police opened what local media described as the country’s first investigation into local Polymarket users over suspected illegal gambling. According to those reports, the investigation was requested by the National Police Agency.
South Korean law carries financial penalties and possible prison terms for gambling-related offences. Under the country’s Criminal Act, gambling can result in a fine of up to 10 million won (about $6,500), while habitual gambling may carry a prison sentence of up to three years or a fine of up to 20 million won. Separately, operating a gambling venue for profit is punishable by up to five years in prison or a fine of up to 30 million won.
For now, the review committee has not announced any enforcement action against Polymarket. Instead, regulators have chosen to consider the company’s explanation before deciding whether corrective measures should be requested, leaving the platform’s status in South Korea dependent on the outcome of that legal assessment.