Polymarket Faces Scrutiny In South Korea As Authorities Probe Users For Election-Related Betting
In Brief
South Korean police are investigating domestic Polymarket users for alleged illegal gambling, marking the country’s first such case amid growing concerns over election-related betting activity.
South Korean police are investigating local users of Polymarket, the global prediction market platform, on suspicion of illegal gambling, according to reports. The case is to be the first in South Korea involving domestic users of the platform. The investigation is being led by Gangwon Provincial Police at the request of the National Police Agency, and it covers users living in Gangwon and other regions across the country.
Under South Korean law, betting on platforms other than Sports Toto is generally prohibited. Authorities say that placing wagers on such sites can fall under Article 246 of the Criminal Act, which covers gambling and habitual gambling. Users found in violation may face fines of up to 10 million won.
The investigation comes as Polymarket remains widely accessible in South Korea. According to local media, users can access the platform without having to bypass IP restrictions, making it easy to participate in prediction markets from within the country. The platform is legal in the United States, but South Korean authorities treat it as a form of private gambling and therefore illegal under domestic law.
A lawyer representing some of the users under investigation highlighted that the basic elements of the gambling offense appear to have been met, but also noted that there is little precedent in South Korea for punishing people over Polymarket use. That lack of prior cases, the lawyer said, makes it difficult to predict what level of punishment, if any, the users might ultimately face.
Election Betting Draws Attention After Heavy Trading Volume
The case has drawn added attention because Polymarket saw major betting activity tied to South Korea’s June 3 local elections. The platform’s markets on the elections attracted betting volume reaching tens of billions of won, suggesting public participation.
Polymarket has also reportedly continued operating without major restrictions for Korean users. Even users paying with dollar-based stablecoins have been able to place bets without the platform imposing special limits or sanctions. This has raised concerns among regulators and law enforcement about the scale of participation and the ease of access.
South Korea’s media regulator, the Korea Communications Standards Commission, reportedly said it had not reviewed Polymarket because no complaints or reports about the platform had been received previously. That situation may now change as police examine whether domestic activity on the site amounts to illegal gambling under Korean law.
The case could become an important test of how South Korea applies its gambling laws to online prediction markets that operate legally overseas but remain restricted at home.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
