South Korean authorities have launched the nation's first criminal probe into domestic users of Polymarket, alleging illegal gambling tied to prediction markets. The Gangwon Provincial Police Agency is leading the investigation after a request from the national police, with reported bets on election-related markets totaling hundreds of billions of won. Under Article 246, offenders could face fines up to 10 million won (~$6,500), while regulators and the Korea Communications Standards Commission review whether the platform breaches national law. The case coincides with Polymarket's global compliance push and reported plans to pursue approval in Japan by 2030.
South Korea Opens First Criminal Probe Into Polymarket Users Over Alleged Illegal Gambling
Photo by BeInCrypto
South Korean police have launched the country's first criminal investigation into domestic users of Polymarket, the prediction-market platform, accusing participants of engaging in illegal gambling activities.
What Officials Are Investigating
The Gangwon Provincial Police Agency is leading the inquiry at the request of the Korean National Police Agency. Investigators are targeting users across South Korea who placed wagers on Polymarket markets, including those tied to the June 3 elections.
Legal Context And Potential Penalties
Polymarket operates legally in the United States after receiving clearance from the Commodity Futures Trading Commission (CFTC) in September 2025, but South Korea maintains strict limits on wagering. Domestic law permits betting only through state-authorised channels such as horse racing and Sports Toto, the latter operated by the Korea Sports Promotion Foundation (KSPO). Sports Toto caps individual wagers at 100,000 won (roughly $65).
Under Article 246 of the Criminal Act, individuals found guilty of gambling or habitual gambling could face fines of up to 10 million won (approximately $6,500). Local reports say bets on markets tied to the June 3 elections reportedly reached totals in the hundreds of billions of won, intensifying scrutiny.
Regulatory Reviews And Industry Response
The Korea Communications Standards Commission, which monitors broadcast and online media, has opened a formal review to assess whether Polymarket constitutes gambling or otherwise violates national law. The probe comes as Polymarket tightens compliance processes worldwide and presses users to verify their identities through more stringent KYC procedures.
Legal Counsel: Attorney An Chang-bo, head lawyer at Respect Law Office, who represents some of the users under investigation, said that while the elements of the gambling offence appear to be met, the absence of any precedent in Korea makes the likely level of punishment difficult to predict.
Polymarket is also reportedly exploring new jurisdictions, including a bid to win regulatory approval in Japan by 2030. The unfolding investigation will be watched closely by global crypto and betting regulators as it could shape how prediction markets are treated in jurisdictions with strict anti-gambling rules.
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