South Korea orders block on Polymarket
South Korean regulators said the platform’s prediction markets could amount to illegal gambling under local law.
South Korea.- Internet service providers in South Korea have been ordered to block access to Polymarket after regulators determined that the prediction market platform facilitates unlicensed gambling. The Korea Communications Standards Commission approved the measure following consultations with the National Police Agency, National Gambling Control Commission and Korea Sports Promotion Foundation.
The agencies reportedly concluded that Polymarket’s operations could amount to gambling or the provision of a gambling venue. The commission also pointed to markets linked to South Korea, including one predicting rainfall in Seoul during August, as evidence that the platform offers betting tied to local events.
The decision follows a regulatory review that began in May. In July, the regulator gave the platform an opportunity to present its position before deciding whether enforcement action was warranted. Around the same period, police in Gangwon Province opened an investigation into Polymarket users over suspected illegal gambling.
At a July 6 hearing, Polymarket argued that South Korean law should not apply to its service because it had removed its Korean-language interface and did not accept payments in Korean won. It also said its peer-to-peer system uses non-custodial smart contracts and does not directly hold users’ funds.
Regulators rejected the arguments, maintaining that the platform’s technical structure and service configuration do not remove its obligations under South Korean law. The commission also considered Polymarket’s involvement in creating markets, setting trading rules, processing transactions and earning fees.
South Korea’s Criminal Act prohibits gambling and provides for a fine of up to 10 million won, equivalent to about $7,000, for the offence.
The decision places South Korea among more than 30 jurisdictions that have restricted access to Polymarket, including Brazil, Australia and the United Kingdom, as regulators in several markets continue to examine whether prediction platforms should be treated as gambling services.
