South Korean police have opened the country's first criminal investigation into Polymarket users, accusing them of illegal gambling under a statute carrying fines of as much as 10 million won ($6,500).
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South Korea launches first Polymarket probe with fines up to $6,500
South Korean police opened the country's first criminal investigation into domestic Polymarket users, accusing them of illegal gambling under Article 246 of the Criminal Act, which carries fines of as much as 10 million won ($6,500).
"It appears the elements of the gambling offense are met. However, because there have been no cases of punishment for Polymarket use in Korea at all, it is difficult to predict the level of punishment," An Chang-bo, head lawyer at Respect Law Office who represents some of the users under investigation, said.
The Gangwon Provincial Police Agency is leading the inquiry at the request of the National Police Agency, targeting users nationwide who placed bets through the prediction market platform. South Korea permits betting only through state-sanctioned Sports Toto, which caps individual wagers at 100,000 won ($65). Polymarket remains directly accessible in the country without requiring VPNs, according to industry observers.
The investigation adds to a widening global crackdown on prediction markets. Polymarket is now entirely geoblocked in 35 regions, including Singapore, Brazil and Indonesia, while facing scrutiny from US lawmakers over insider trading concerns. The platform said in May it was weighing mandatory identity verification aligned with global Know Your Customer standards.
Election betting drew scrutiny
The probe intensified after Polymarket listed markets tied to South Korea's June 3 local elections, where President Lee Jae-myung's Democratic Party swept most major races. One contract on whether Lee would be removed from office in 2026 saw nearly $54,000 in total trading volume, according to Polymarket data. Bets on the election outcomes reportedly totaled hundreds of billions of won, drawing the attention of the Korea Communications Standards Commission, which launched a formal review in May to determine whether the platform constitutes gambling under national law.
Global regulatory pressure mounts
Polymarket faces restrictions in more than a dozen jurisdictions. Singapore, Poland, Portugal, Hungary, Ukraine, Brazil and Indonesia have all blocked or prohibited the platform, citing gambling concerns. In the US, lawmakers proposed legislation in January to restrict political prediction market trading by government officials after a Polymarket user netted over $400,000 on a contract tied to the removal of then-Venezuelan President Nicolas Maduro. The chair of the House Oversight and Government Reform Committee sent letters to the CEOs of Kalshi and Polymarket in May questioning their response to those insider trading allegations.
Polymarket is also pursuing new markets, including a reported bid for regulatory approval in Japan by 2030, even as it tightens compliance worldwide by pushing traders to verify their identities.
This article is for informational purposes only and does not constitute investment advice.
[1] South Korean Authorities Launch First Reported Illegal Gambling Probe Into Polymarket Users[2] South Korea Opens First Polymarket Gambling Probe Targeting Domestic Users[3] South Korea police probe Polymarket users over illegal gambling claims: Report[4] South Korea Launches Criminal Investigation Into Polymarket Bettors[5] 10+ countries have now banned or restricted Polymarket and Kalshi — here's the full list
