South Korean regulators are holding off on taking action against prediction market platform Polymarket. They are conducting a closer review of its operations as scrutiny over the platform continues to grow.
The Korea Communications Standards Commission (KCSC) has decided not to impose immediate restrictions. Instead, it is requesting a formal explanation from Polymarket before determining whether corrective measures are necessary. Regulators said they will assess the platform’s business model and operations against South Korea’s gambling laws. They will do this before making a final decision.
Police Investigation Adds Pressure
The regulatory review follows a separate police investigation launched in Gangwon Province. This investigation is believed to be South Korea’s first probe into alleged illegal gambling involving domestic Polymarket users.
South Korea only permits limited legal betting through the state-backed Sports Toto system, where individual wagers are capped at 100,000 won. Local reports estimated that trading related to the country’s June presidential election reached hundreds of billions of won on Polymarket. Consequently, concerns have been raised that participants could face penalties under existing gambling laws.
Prediction Markets Face Regulatory Questions
A key issue remains whether prediction markets should be treated as gambling platforms.
Polymarket maintains that its markets differ from traditional betting products. In the United States, it operates under oversight from the Commodity Futures Trading Commission (CFTC) rather than gambling regulators.
However, several countries have taken a stricter view. Authorities in Singapore, Myanmar, and Indonesia have already restricted access to the platform. Meanwhile, European regulators have increasingly argued that prediction market operators require local gambling licences.
Global Scrutiny Continues
South Korea’s review reflects a broader international debate over how prediction markets should be regulated.
While some jurisdictions have moved to restrict access, others are exploring regulatory frameworks. Gibraltar recently licensed prediction market operator ADI Predictstreet as a betting intermediary, highlighting the growing divide in regulatory approaches.
For now, South Korean authorities are continuing their assessment. Any enforcement action is expected only after reviewing Polymarket’s response and determining whether its services comply with domestic gambling regulations.
