South Korea reviews Polymarket over suspected illegal gambling

South Korea’s Broadcasting, Media and Communications Review Committee has invited Polymarket to submit its position before the review body decides whether to seek corrective action over suspected illegal gambling on the prediction market platform.

The committee said it will accept a formal submission from Polymarket to “thoroughly verify the legality of Polymarket and the way the service is operated,” according to a translated version of its press release. The submission will be used to assess whether the platform’s operations fall within legal prohibitions.

The review refers to provisions in the National Gambling Control Commission Act that define an “illegal gaming business” to include online services that enable speculative gambling and give regulators authority to monitor such services.

The committee’s action follows a police investigation into local users of Polymarket. On June 5, the Gangwon Provincial Police, acting on a request from the National Police Agency, opened what was reported as South Korea’s first illegal gambling probe into activity on the platform tied to election-related markets.

South Korea’s Criminal Act sets penalties for gambling. A fine of up to 10 million won (about $6,500) can apply for gambling. Habitual gambling can carry up to three years in prison or a fine of up to 20 million won. Operating a gambling venue for profit can result in up to five years in prison or a fine up to 30 million won.

Polymarket restricts access in multiple jurisdictions. The company states its geoblocks are designed to comply with sanctions, local financial rules, gambling and prediction market laws, anti-money-laundering rules and Know Your Customer requirements. Polymarket lists 33 countries where it limits access, including the United States, the United Kingdom, France, Germany, Brazil, Singapore, Japan and Australia, and excludes certain regions within otherwise allowed countries, such as Alberta, British Columbia, Ontario and Quebec in Canada and parts of Ukraine.

The review shifts regulatory focus from individual users to the platform operator. The committee did not set a timeline for a final decision. If it finds Polymarket’s activities violate South Korean law, the body could pursue corrective steps under its authority.

Polymarket has not publicly disclosed the contents of any submission to South Korean authorities.