The probe is led by the Gangwon Provincial Police at the request of the National Police Agency, and it comes as regulators increase scrutiny of prediction market platforms. Users found to have participated in unauthorized gambling activities could face fines of up to 10 million won ($6,500).
South Korea Cracks Down on Polymarke
South Korean authorities have reportedly launched the country's first criminal investigation into local users of the decentralized prediction market platform Polymarket. According to reports from local media outlet ChosunBiz, the investigation is being conducted by the Gangwon Provincial Police at the request of the National Police Agency. The probe is focused on whether South Korean residents who participated in prediction markets on Polymarket may have violated the country's gambling laws.
Article from ChosunBiz
Under South Korean law, gambling is heavily regulated, with only a limited number of government-authorized betting platforms permitted to operate legally. Sports Toto is the country's official state-authorized sports betting platform, and participation in unauthorized gambling services can result in criminal penalties.
People found guilty under Article 246 of South Korea's Criminal Act, which covers gambling and habitual gambling offenses, may face fines of up to 10 million won, equivalent to approximately $6,500.
The investigation forms part of a wider international crackdown on Polymarket and similar prediction market platforms. Several countries have already taken steps to restrict or prohibit access to the platform. Jurisdictions including Singapore, Poland, Portugal, Hungary, Ukraine, Brazil, and Indonesia have either blocked or banned Polymarket entirely. Despite these restrictions elsewhere, the platform is still accessible within South Korea.
The reported probe follows South Korea's recent local elections, where President Lee Jae Myung's ruling Democratic Party secured victories across most major contests. One Polymarket contract related to South Korean politics attracted attention by allowing users to speculate on whether Lee would be removed from office before 2026. According to platform data, the market generated nearly $54,000 in trading volume.
Political betting markets are under a lot of regulatory scrutiny around the world. In the United States, lawmakers proposed legislation earlier this year to restrict political prediction market participation by government officials after concerns emerged over potential insider trading. Those concerns intensified after a Polymarket user reportedly earned more than $400,000 from a contract tied to the potential removal of former Venezuelan President Nicolás Maduro.
In response to growing regulatory concerns, Polymarket recently indicated that it is considering the introduction of a mandatory identity verification system. The proposed measures would align the platform more closely with global Know Your Customer (KYC) standards that are commonly required by regulated financial institutions and cryptocurrency exchanges.
