South Korea’s Broadcasting, Media and Communications Review Committee will hear Polymarket’s response before deciding whether to take corrective action against the prediction market platform over gambling concerns.
The committee said Monday it would allow Polymarket to submit its position before issuing a final decision on a corrective request. “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 centers on whether Polymarket’s operations fall under South Korea’s National Gambling Control Commission Act, which classifies online services that facilitate speculative gambling as illegal gaming businesses and grants authorities the power to monitor and take action against such platforms.
The latest review marks a shift in South Korea’s scrutiny of Polymarket, expanding the focus from individual users to the platform itself. The move follows an earlier police investigation into South Korean users accused of participating in illegal gambling through election-related prediction markets.
On June 5, the Gangwon Provincial Police launched what local media described as the country’s first illegal gambling investigation targeting domestic Polymarket users. The probe was initiated at the request of the National Police Agency.
Under South Korea’s Criminal Act, gambling is punishable by a fine of up to 10 million won (approximately $6,500), while habitual gambling carries penalties of up to three years in prison or a fine of up to 20 million won. Operating a gambling venue for profit is punishable by up to five years in prison or a fine of up to 30 million won.
South Korea’s Polymarket review marks one of the country’s first major regulatory actions against a blockchain-based prediction market. The outcome could set an important precedent for how prediction markets are treated under existing law.
The case also reflects South Korea’s broader approach to digital assets. While the country has introduced clearer cryptocurrency regulations, authorities remain cautious about new blockchain-based financial products, particularly those involving speculation and consumer protection risks.
A ruling against Polymarket could extend beyond the platform itself. Other decentralised prediction markets may face increased regulatory scrutiny if authorities determine these services fall under existing gambling laws.
The Korea Communications Standards Commission has not announced when it will issue its decision. The commission is expected to complete its review after considering Polymarket’s response, with regulators, legal experts and the industry closely watching the outcome.
Polymarket said it restricts access in 33 countries, including the United States, the United Kingdom, France, Germany, Brazil, Singapore, Japan and Australia, to comply with sanctions, financial regulations, gambling and prediction market laws, anti-money laundering requirements, and Know Your Customer rules.
The platform also restricts access in Alberta, British Columbia, Ontario and Quebec in Canada, as well as Crimea, Donetsk and Luhansk in Ukraine.