South Korean police have opened a nationwide investigation into domestic users of Polymarket, marking the first known case in which local law enforcement has directly focused on the platform’s users rather than the platform itself. ChosunBiz reported that the Gangwon Provincial Police Agency is examining traders across the country for possible violations of gambling laws. If participation in certain prediction contracts is found to be illegal, users could face financial penalties.
South Korea keeps tight limits on betting activity. Residents are allowed to place legal sports wagers only through Sports Toto, which is operated under the Korea Sports Promotion Foundation, and individual bets are capped at 100,000 won, or about $65. Polymarket, by contrast, allows users to stake cryptocurrency on political, social, and sports outcomes, putting those contracts under direct regulatory review.
Election contracts drew heavier scrutiny
The investigation gathered pace after election-related markets on Polymarket saw strong trading activity. South Korea held local elections on June 3, and contracts tied to political outcomes attracted substantial attention. One market linked to the Seoul mayoral race recorded more than $52 million in trading volume. Several other election contracts also posted elevated activity as users speculated on voting results.
Regulators had already started looking at the platform before the latest police action. Last month, the Korea Communications Standards Commission reviewed whether Polymarket’s services breached domestic rules after a formal complaint was filed over its event contracts. Authorities are now looking at two questions at once: whether the platform’s offerings fit within local law, and whether domestic participants crossed the line into illegal gambling. According to ChosunBiz, offenders could face fines of up to 10 million won, roughly $6,495.
Restrictions expand across markets as growth efforts continue
Pressure on Polymarket has also risen outside South Korea. Indonesian authorities blocked access to the platform during a broader campaign against online betting services, while India has imposed similar access restrictions. At the same time, Bloomberg reported that Polymarket recently appointed a representative in Japan even though the platform still faces limitations there.
Since launching in 2020, Polymarket has grown into one of the larger prediction market platforms in the digital asset sector, offering contracts tied to elections, economic developments, sports events, and other public outcomes. The South Korean investigation now places users in one of Asia’s most active crypto markets under direct scrutiny, while the legal status of crypto-based prediction markets remains under review in multiple jurisdictions.