Image credit: Shutterstock
South Korea’s media and communications review body is weighing possible action against Polymarket over concerns that the prediction market may operate as an unlicensed gambling service.
The committee will first give Polymarket a chance to submit its position before deciding whether to issue a corrective request.
Committee Awaits Polymarket Response
The Broadcasting, Media and Communications Review Committee’s communications subcommittee met on July 6 and decided to hear from the platform before making a final ruling. The review will examine Polymarket’s legality and how the service operates.
Officials said they would review the company’s response and related materials before deciding whether action is needed. That could include measures affecting access to the service in South Korea, although no final order has been issued.
USDC Markets Draw Gambling Concerns
Polymarket lets users trade yes-or-no positions on political, economic, election, sports and other event outcomes. Users deposit crypto assets such as USDC, trade outcome shares and receive a payout if their prediction is correct.
If the prediction is wrong, the position can lose its value. That structure is at the center of the South Korean review. Critics in the country say the platform looks less like a financial information market and more like a speculative betting service.
The review does not automatically mean Polymarket has breached Korean law. It does put the platform under a formal process that could lead to restrictions if the committee decides the service violates domestic rules.
June Police Probe Targeted Local Users
The platform review follows an earlier police investigation into South Korean Polymarket users. Gangwon Provincial Police began investigating local users on June 5 after a request from the National Police Agency.
The probe focused on alleged illegal gambling tied to election-related markets. That case targeted users, not the platform itself.
The new review moves scrutiny closer to Polymarket’s service model and whether the site should be available to Korean users. Under South Korean criminal law, gambling can lead to fines, while habitual gambling and running a gambling venue for profit carry heavier penalties.
Country Blocks Add Pressure on Prediction Markets
Polymarket already restricts access in several markets, including the United States, United Kingdom, France, Germany, Brazil, Singapore, Japan and Australia.
The South Korean review adds another jurisdiction to the global fight over whether prediction markets should be treated as trading venues, information markets or gambling platforms.
Polymarket’s response will determine whether the committee moves toward a corrective request, demands changes or leaves the service unchanged.
