South Korean regulators have launched a review of prediction market platform Polymarket to determine whether it should be classified as an illegal gambling service under domestic law.
The Korea Communications Standards Commission (KCSC) confirmed that it is investigating the platform following a formal complaint, while also examining how regulators in other jurisdictions have approached the rapidly growing prediction market sector.
Regulators Assess Gambling Classification
According to a KCSC official, authorities are evaluating whether Polymarket’s services could encourage gambling activity and therefore fall within the scope of South Korea’s gambling regulations.
The review presents unique legal challenges because Polymarket operates differently from traditional betting platforms. Instead of placing conventional wagers, users trade on the outcomes of real-world events using stablecoins. Markets cover a wide range of topics, including elections, economic indicators, cryptocurrency prices, and other public events.
The commission acknowledged that prediction markets require a more detailed assessment than typical illegal betting sites. However, officials indicated that the platform could still be classified as a new form of gambling-related service under existing regulations.
Korean Access Raises Regulatory Concerns
A key factor in the review is Polymarket’s accessibility within South Korea. The platform remains available to local users and offers a Korean-language interface, despite operating from overseas.
Under South Korean communications regulations, authorities may exercise jurisdiction over foreign-based services that actively target Korean users. This gives regulators grounds to investigate the platform even if its infrastructure is located outside the country.
Legal experts believe this could ultimately allow the commission to restrict or block access if it determines that the service violates domestic law.
Global Scrutiny of Prediction Markets Intensifies
The review comes as prediction markets continue to expand rapidly worldwide. Industry data cited by local reports showed that global prediction market trading volume reached $51 billion in 2025, more than triple the previous year’s total. Analysts expect the market to grow further, with projections reaching $240 billion this year and potentially $1 trillion by 2030.
Several jurisdictions have already taken action against Polymarket. Countries including France, Germany, Italy, India, Brazil, Australia, and Argentina have reportedly classified the platform as an illegal gambling service and blocked access.
In the United States, regulators in several states have also challenged prediction market operators through cease-and-desist orders and legal action related to event-based contracts.
Potential Impact on the Korean Market
Jin Hyun-soo told local media that South Korean authorities have the power to block access to Polymarket if they conclude the platform is targeting Korean users through localized services.
He added that failure to engage with local regulatory requirements could significantly limit the platform’s ability to operate in the country. The outcome of the review could also influence how South Korea regulates prediction markets as the sector continues to gain global attention.
