South Korea reviews Polymarket over gambling concerns

• South Korea's media regulator will seek Polymarket's response before deciding whether to take action over gambling concerns.
• The review could lead to corrective measures if regulators determine the prediction market breaches local gambling laws.
• The case marks a broader regulatory focus on prediction market platforms operating in South Korea.

Polymarket will be given an opportunity to respond before South Korea's Broadcasting, Media and Communications Review Committee decides whether to take corrective action over concerns that the prediction market platform may breach the country's gambling laws.

The committee said it will review Polymarket's submission before determining whether a corrective request is appropriate, following concerns that the platform could fall within South Korea's definition of an illegal online gambling business.

“We decided to provide an opportunity for Polymarket to submit its opinion to thoroughly verify the legality of Polymarket and the way the service is operated,” said the Broadcasting, Media and Communications Review Committee.

South Korea's National Gambling Control Commission Act gives regulators authority to investigate online services that facilitate speculative gambling, while Polymarket currently restricts access in 33 countries, including the United States, United Kingdom, France, Germany, Australia and Japan.

The review shifts South Korean regulatory attention from individual users to the platform itself, and as Polymarket is not a publicly listed company there is no share price available.

The latest review follows a June police investigation into South Korean users of Polymarket over alleged illegal gambling linked to election-related prediction markets.

Polymarket said its regional restrictions are intended to comply with sanctions, financial regulations, gambling laws, anti-money laundering requirements and Know Your Customer obligations across different jurisdictions.