South Korea’s regulatory stance on decentralized prediction markets has shifted from monitoring retail users to targeting platform infrastructure directly. The Broadcasting, Media, and Communications Review Committee announced it will summon Polymarket executives to present an official operational defense before determining whether to issue a formal corrective enforcement request.
The administrative review centers on potential violations of the National Gambling Control Commission Act, which prohibits unapproved online services from facilitating speculative wagering. This probe follows a June investigation by the Gangwon Provincial Police targeting local citizens trading on political election outcomes via the platform. Under South Korea’s Criminal Act, habitual gambling carries up to three years of imprisonment, while operating an unauthorized venue for financial profit can yield a five-year prison sentence.
Polymarket maintains that its compliance architecture actively cross-references global sanctions, anti-money laundering requirements, and local financial jurisdictions. However, as South Korea joins a block of 33 countries, including the United States, Singapore, and Japan, enforcing platform-level geoblocks, the case highlights the growing friction between borderless DeFi protocols and rigid domestic gaming legislation.
