Key Takeaways:
South Korea's media regulator shifted its focus from individual users to the platform itself, opening a formal review that could block Polymarket nationwide.
South Korea's Broadcasting, Media and Communications Review Committee said Monday it will allow Polymarket to submit its position before deciding whether to issue a corrective request over gambling concerns, according to a machine-translated press release. The review marks the first time the regulator has targeted the platform directly rather than its users.
"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," the committee said.
The review follows a police probe launched June 5 by the Gangwon Provincial Police — reportedly South Korea's first illegal gambling investigation into local Polymarket users, focused on election-related betting markets. That investigation was requested by the National Police Agency, according to local media reports at the time.
Under South Korea's Criminal Act, gambling carries a fine of as much as 10 million won ($6,500), while habitual gambling can bring up to three years in prison or a fine of as much as 20 million won. Operating a gambling venue for profit is punishable by as long as five years in prison or a fine of as much as 30 million won. The National Gambling Control Commission Act defines "illegal gaming business" to include providing online services that enable speculative wagering.
From users to the platform
The committee's action represents an escalation in South Korea's approach to Polymarket. The earlier investigation targeted individuals who placed bets on the platform, while the current review examines whether Polymarket's structure and operations violate the country's gambling laws. If the committee finds a violation, it has the authority to issue corrective orders, including blocking access to the platform within South Korea.
Polymarket already restricts access in 33 countries, including the United States, the United Kingdom, France, Germany, Brazil, Singapore, Japan and Australia, according to its documentation. The company says its restrictions are designed to comply with sanctions, local financial rules, gambling and prediction market laws, anti-money laundering requirements and Know Your Customer regulations.
Global regulatory pressure mounts
The South Korean review adds to growing regulatory scrutiny of Polymarket across multiple jurisdictions. In the United States, the Commodity Futures Trading Commission opened a broad investigation into the platform covering business activity and social media practices, following pressure from lawmakers. The European Securities and Markets Authority warned Polymarket that some of its contracts may fall under existing financial laws.
Despite access restrictions, U.S.-linked wallets traded about $571 million in political contracts on Polymarket over the past year, according to on-chain research firm Allium, making the United States the largest national group in the data. The finding shows that geoblocks have not eliminated demand — they have pushed activity into offshore crypto-based markets that remain visible on-chain but harder for regulators to control.
The outcome of South Korea's review could set a precedent for how other Asian economies approach decentralized prediction markets. A blocking order would effectively bar South Korean residents from accessing Polymarket, potentially disrupting trading activity and signaling stricter enforcement ahead for crypto-based betting platforms in the region.
This article is for informational purposes only and does not constitute investment advice.
