South Korea watchdog reviews Polymarket over possible illegal gambling breach

South Korean regulators are giving Polymarket a chance to explain its business before deciding whether to seek corrective action over concerns that the crypto-based prediction platform may violate the country’s gambling laws. The Broadcasting, Media and Communications Review Committee said it wants to examine both Polymarket’s legal status and how its services operate before making a final recommendation. The review follows a June police investigation into South Korean users accused of participating in alleged illegal gambling through election-related prediction markets. The scrutiny centers on whether Polymarket’s markets amount to speculative online gambling under South Korean law. Authorities are assessing the platform under the National Gambling Control Commission Act, which treats illegal gaming businesses as services that facilitate speculative gambling over the internet. South Korean criminal law provides for fines and possible prison terms for gambling-related offenses, with tougher penalties for habitual gambling or operating a gambling venue for profit. Polymarket already restricts access in 33 countries, including the United States, the United Kingdom, France, Germany, Brazil, Singapore, Japan and Australia, and also blocks selected regions in Canada and parts of Ukraine. The South Korean review marks a shift in attention from individual users to the platform itself and could help determine how one of Asia’s largest crypto markets approaches prediction-market services more broadly.