South Korea Opens First Probe of Polymarket Users

South Korean police have opened the country’s first investigation into domestic users of the prediction market Polymarket, accusing nationwide bettors of illegal gambling after markets allowed wagers on the June 3 elections. The Gangwon Provincial Police Agency is leading the inquiry at the request of the national police, and investigators are targeting users across the country who placed bets through the platform. Authorities identified a market tied to the June 3 vote and said the associated bets amounted to hundreds of billions of won.

Police said users who placed wagers on Polymarket could face prosecution under Article 246 of the Criminal Act. Under that law, illegal gambling can bring fines up to 10 million won and additional penalties for habitual offenders. South Korea permits gambling only through state-sanctioned outlets such as horse racing and a sports betting service operated by the Korea Sports Promotion Foundation, which caps individual bets at 100,000 won.

The Korea Communications Standards Commission has opened a formal review to decide whether Polymarket’s services constitute gambling or breach domestic rules. Investigators and regulators will use the review and the police inquiry to determine whether to charge individual users and how broadly penalties will be applied.

Attorney An Chang-bo, who represents some of the users under investigation, described the legal picture as unclear: “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.” He said a lack of precedent makes outcomes hard to forecast.

Polymarket operates in other jurisdictions under varied regulatory regimes. The platform completed a U.S. regulatory process in September 2025 and has tightened identity verification for traders amid growing scrutiny. Company plans cited by observers include seeking approval in other Asian markets by 2030.

Officials said the case could set a legal precedent for how South Korea treats online prediction markets that allow monetary wagers on political events and other outcomes. The investigation is ongoing as authorities gather records and identify users who placed bets on the contested markets.