TLDR
- South Korea’s media regulator has ordered internet providers to block access to Polymarket, a US-based prediction market platform.
- The Korea Media and Communications Commission ruled that Polymarket’s activities fall under gambling law after consulting police and gambling oversight agencies.
- Regulators pointed to Polymarket’s winner-take-all payout structure and markets on topics like Seoul rainfall as reasons for the block.
- Polymarket argued it isn’t subject to Korean law because it uses non-custodial, blockchain-based transactions, but the commission rejected that defense.
- Polymarket is already blocked in dozens of countries, including several in the Asia-Pacific region, and no start date for the South Korea block has been announced.
South Korea is preparing to block domestic access to Polymarket. The move comes from the Korea Media and Communications Commission, which reviewed the platform’s activities this week.
The commission decided that Polymarket’s operations fall into categories tied to gambling. Internet service providers in South Korea will now be required to restrict access to the site.
No exact date has been given for when the block will start. Reports on the decision did not include a timeline for enforcement.
The commission made its ruling on Tuesday. It reached the decision after talking with the Korean National Police Agency, the National Gambling Control Commission, and the Korea Sports Promotion Foundation.
Regulator Cites Gambling Concerns
A subcommittee within the commission found that Polymarket’s activities included information that could help set up or support gambling. This falls under South Korea’s criminal law.
The commission also said Polymarket broke the country’s National Sports Promotion Act. Officials pointed to the platform’s winner-take-all setup, where a user’s gains or losses depend on outcomes they cannot control.
Polymarket lets people bet on outcomes in politics, economics, sports, elections, and weather. Regulators said these markets could lead to real financial swings for users based on events outside their control.
One example cited by officials was a market tied to rainfall totals in Seoul during August. This local market was part of the reasoning behind the access block.
Polymarket Pushes Back on the Ruling
Polymarket submitted a statement to the commission arguing it should not fall under South Korea’s Information and Communications Network Act. The company said it does not offer Korean-language services.
The platform also said it cannot accept payments in Korean won. Polymarket argued these facts should place it outside the reach of local communications law.
The company pointed to its use of non-custodial transactions and blockchain-based smart contracts as further support for its position. It said these features mean it does not act as an administrator under Korean law.
The commission did not accept this argument. It said companies cannot avoid South Korean law simply by relying on technical structure or by skipping Korean-language services.
South Korea now joins a growing list of countries restricting Polymarket. The company’s own website lists Japan, North Korea, Myanmar, Singapore, Taiwan, and Thailand as blocked markets in the Asia-Pacific region.
Polymarket says it is fully restricted in 39 countries worldwide. The company has said these limits are meant to comply with sanctions, financial rules, gambling laws, and anti-money laundering requirements.
As of now, South Korean officials have not released a start date for the block. The commission’s decision sets the legal basis for the restriction, but internet providers have not confirmed when enforcement will begin.
