South Korean police have launched their first investigation into domestic users of the online prediction market Polymarket, accusing them of illegal gambling. The Gangwon Provincial Police Agency is leading the probe after receiving a request from the Korean National Police Agency, targeting users who placed bets through the platform.
Why Polymarket Draws Scrutiny in South Korea
Polymarket operates legally in the United States, having cleared a review by the Commodity Futures Trading Commission in September 2025. But in South Korea, betting is tightly controlled. The country only permits gambling through state-sanctioned outlets like horse racing and Sports Toto, run by KSPO. Individual bets are capped at 100,000 won, roughly $65. Anything beyond that is illegal under the Criminal Act.
The platform recently listed the June 3 national elections as an active betting market, with bets reportedly totaling hundreds of billions of won. That caught the attention of regulators and now law enforcement.
The Legal Risks for Users
Investigators are looking at users across the country who made bets on Polymarket. Under Article 246 of the Criminal Act, which covers gambling and habitual gambling, individuals could face fines of up to 10 million won — about $6,500. Attorney An Chang-bo, head lawyer at Respect Law Office, represents some of those under investigation. He said there's no precedent for this kind of case, making the level of punishment difficult to predict.
The Korea Communications Standards Commission also started a formal review in May to decide whether Polymarket amounts to gambling or violates South Korean law. That review is ongoing.
Facing mounting legal pressure in South Korea, Polymarket is pushing traders to verify their identities through stricter know-your-customer checks. The company is also reportedly seeking regulatory approval in Japan by 2030, part of a broader push into Asian markets where its platform might not run into the same problems.
For now, South Korean users who placed bets on the June 3 elections are waiting to see if they'll be charged. The police investigation is still in its early stages, and the KCSC's classification of Polymarket as gambling or not could shape how aggressively authorities pursue the cases.
