Polymarket Faces Potential South Korean Regulatory Action Over Gambling Allegations
Before determining whether to pursue corrective measures against the prediction market platform, South Korea's broadcasting and communications oversight committee plans to hear Polymarket's perspective.
The oversight committee responsible for media and communications in South Korea has announced it will receive input from Polymarket prior to reaching a determination on whether corrective measures should be implemented against the prediction market service.
The Broadcasting, Media and Communications Review Committee announced on Monday that Polymarket would be granted the opportunity to present its stance before any final determination is made on a corrective request related to concerns about gambling activities.
According to a machine translation of the committee's press release, the regulatory body stated: "We decided to provide an opportunity for Polymarket to submit its opinion to thoroughly verify the legality of Polymarket and the way the service is operated."
Under the National Gambling Control Commission Act in South Korea, "illegal gaming business" encompasses the provision of online services that facilitate speculative gambling activities, and grants regulatory bodies the power to oversee and take action against such operations.
This regulatory examination occurs as Polymarket encounters access limitations across multiple jurisdictions worldwide. The platform reports that it maintains restrictions in 33 nations, among them the US, United Kingdom, France, Germany, Brazil, Singapore, Japan and Australia.
South Korea's scrutiny moves from users to the platform
This review represents a transition in how South Korea approaches Polymarket oversight, shifting attention from individual users toward the platform's operations directly. The development also comes after law enforcement authorities previously initiated an investigation into South Korean Polymarket users regarding suspected illegal gambling activities connected to election-related betting markets.
The Gangwon Provincial Police initiated what local reports described as South Korea's inaugural illegal gambling investigation targeting domestic Polymarket users on June 5. According to media coverage from that period, the National Police Agency had requested the investigation.
South Korea's Criminal Act prescribes penalties for gambling violations, with standard gambling offenses punishable by fines reaching up to 10 million won (approximately $6,500), whereas individuals engaged in habitual gambling may face imprisonment for up to three years or fines as high as 20 million won. Furthermore, those who operate gambling establishments for commercial gain face potential imprisonment of up to five years or fines reaching 30 million won.
According to Polymarket, the access restrictions it implements are intended to ensure compliance with various regulatory frameworks, including sanctions programs, local financial regulations, gambling and prediction market legislation, anti-money laundering mandates and Know Your Customer rules.
Beyond country-level restrictions, the company identifies specific geographic regions within countries that are otherwise accessible as subject to limitations, including the Canadian provinces of Alberta, British Columbia, Ontario and Quebec, along with the Ukrainian territories of Crimea, Donetsk and Luhansk.