South Korea regulator to hear Polymarket's defense on gambling concerns
In brief
- South Korea's review body will hear Polymarket's position before deciding on corrective action
- Committee cited gambling laws defining illegal gaming to include online speculative services
- Polymarket is restricted in 33 countries including the US, UK, and Japan
Committee Allows Polymarket to Respond
The committee decided to provide Polymarket an opportunity to submit its opinion and verify the legality of the platform and its operations. This marks a procedural shift in South Korea's approach to the platform—moving scrutiny from individual users to Polymarket itself.
That escalation began in June. On June 5, the Gangwon Provincial Police launched South Korea's first illegal gambling probe into local Polymarket users over alleged illegal gambling tied to election-related markets. The move signaled a hardening regulatory stance.
Gambling Laws and Penalties
South Korea's legal framework is clear. The National Gambling Control Commission Act defines "illegal gaming business" to include providing online services that enable speculative gambling. Penalties are steep. Under the Criminal Act, gambling is punishable by a fine of up to 10 million won (approximately $6,500). Operating a gambling venue for profit carries even harsher sanctions—up to five years in prison or a fine of up to 30 million won.
Polymarket's Global Restrictions
Polymarket already operates under significant geographic constraints. The platform is restricted in 33 countries, including the US, United Kingdom, France, Germany, Brazil, Singapore, Japan and Australia. The company says these restrictions are designed to comply with sanctions, local financial rules, gambling and prediction market laws, anti-money laundering requirements and Know Your Customer regulations. Polymarket also lists certain regions within otherwise accessible countries as restricted, including Alberta, British Columbia, Ontario and Quebec in Canada.
South Korea's review process now enters a waiting period. The committee will assess Polymarket's response before determining whether to formally request corrective measures.
