South Korean Police Investigate Polymarket Users Over Alleged Illegal Gambling Activity

South Korean authorities have reportedly opened an investigation into local users of the prediction market platform Polymarket, marking the country’s first known probe targeting participants on the crypto-based betting platform.

According to local reports, the Gangwon Provincial Police Agency is examining whether South Korean residents violated national gambling laws by placing wagers through Polymarket. Under current regulations, sports betting is heavily restricted, with Sports Toto operating as the country’s only authorized betting platform under the Korea Sports Promotion Foundation.

Individuals found to have participated in unauthorized betting activities could face fines of up to 10 million Korean won, equivalent to roughly $6,500.

Election-Related Betting Draws Attention

The reported investigation comes shortly after South Korea’s local elections held on June 3. Prediction markets related to the Seoul mayoral race attracted significant activity, with trading volume reportedly exceeding $52 million.

Authorities are also reviewing complaints that Polymarket’s event-based contracts may fall under the definition of illegal gambling under South Korean law.

Regulatory Scrutiny of Prediction Markets Expands Globally

Polymarket has faced increasing attention from regulators in several countries as governments assess whether prediction markets should be treated as financial products, entertainment platforms or gambling services.

Several Countries Tighten Oversight

Indonesia has already blocked access to Polymarket as part of a broader crackdown on online betting platforms, while restrictions also remain in place in India. At the same time, the company has reportedly explored expansion opportunities in other markets, including Japan.

Since launching in 2020, Polymarket volume has reached approximately $88.6 billion, highlighting its growing influence within the digital asset sector.