TLDR
- South Korea’s Korea Communications Standards Commission has not restricted Polymarket yet, but wants the company to explain its operations first.
- Police in Gangwon Province opened South Korea’s first investigation into alleged illegal gambling tied to Polymarket users.
- Trading linked to South Korea’s June 3 presidential election reportedly reached hundreds of billions of won on the platform.
- South Korea’s own betting system, Sports Toto, caps individual bets at 100,000 won, far below reported Polymarket activity.
- Singapore, Myanmar, and Indonesia have already restricted Polymarket, while Gibraltar has approved prediction market operators to work as betting intermediaries.
South Korean regulators are taking a cautious approach toward Polymarket. The Korea Communications Standards Commission has decided not to impose immediate restrictions on the platform.
Instead, the commission is asking Polymarket to submit a formal explanation of its business model. A final decision will wait until officials review that response.
The commission’s communications review panel said it needs more time before ruling on the platform’s legality. Reviewers are looking closely at how Polymarket structures its markets and services.
A Police Investigation Adds Pressure
The regulatory review comes after a separate development last month. Police in Gangwon Province opened what is being called South Korea’s first investigation into alleged illegal gambling connected to Polymarket.
Reports indicate the National Police Agency requested the inquiry. The investigation focuses on domestic users of the platform.
South Korea’s gambling laws leave little room for alternatives to state-run betting. Sports Toto, run by the Korea Sports Promotion Foundation, is the main legal option for wagering.
Sports Toto also enforces strict limits. Individual bets are capped at 100,000 won.
That cap stands in sharp contrast to what reportedly happened on Polymarket during South Korea’s presidential election on June 3. Local reports estimate trading tied to the vote reached hundreds of billions of won.
Participants in that activity could face penalties. Under current law, fines can reach 10 million won.
How Other Countries Have Responded
A bigger question remains unresolved. Regulators are still debating whether prediction markets count as gambling businesses at all.
Polymarket rejects that label. The company argues its markets work differently from traditional betting products.
In the United States, Polymarket operates under the Commodity Futures Trading Commission. That agency oversees derivatives markets, not gambling.
Few other countries have accepted that distinction. Singapore added Polymarket to its Gambling Regulatory Authority blacklist earlier this year.
Myanmar has also blocked access to the platform. Indonesia took similar action in May after markets tied to President Prabowo Subianto drew attention from officials.
European countries have generally taken a stricter view. Several require prediction markets to obtain gambling licenses before serving local users, something Polymarket has not pursued.
Not every response has been restrictive. Gibraltar recently approved two prediction market businesses to operate as betting intermediaries.
One of those companies, ADI Predictstreet, has a partnership with FIFA. It shows some regulators are open to a different framework for these platforms.
South Korea is now weighing the same questions other countries have already faced. For now, the Korea Communications Standards Commission is waiting on Polymarket’s formal explanation before deciding on any corrective steps.
