South Korean police have opened the country's first criminal investigation targeting local users of Polymarket, the world's largest blockchain-based prediction market platform. The probe is being led by the Gangwon Provincial Police Agency following a request from South Korea's National Police Agency, according to local media outlet ChosunBiz. Investigators are focusing on South Korean residents who allegedly used Polymarket to bet on various events, including the country's June 3 local elections. Under South Korean law, betting on platforms outside the state-run Sports Toto system is broadly treated as illegal gambling, meaning users under investigation could face penalties under Article 246 of the Criminal Act, which carries fines of up to 10 million won. This marks a significant escalation in regulatory pressure on prediction market users in South Korea.
Gangwon Provincial Police Agency Targets Individual Polymarket Users
The investigation represents the first known criminal probe targeting South Korean users of Polymarket rather than the platform itself. Investigators are examining South Korean residents who allegedly used Polymarket to bet on various events, including the June 3 local elections. Authorities noted that users accessed the platform directly, with no VPNs or IP-circumvention tools required. Polymarket also reportedly allowed Korean users to place bets using dollar-backed stablecoins without imposing meaningful restrictions.
South Korean Law Classifies Prediction Market Activity as Illegal Gambling
Under South Korean law, betting on platforms outside the state-run Sports Toto system is broadly treated as illegal gambling. South Korean authorities consider prediction market activity a form of private gambling, meaning users under investigation could face penalties under Article 246 of the Criminal Act, which carries fines of up to 10 million won. Attorney Ahn Chang-bo, who represents some of the users involved, stated, "It appears that the elements constituting the crime of gambling are met. However, since there have been absolutely no domestic cases of punishment for using polymarkets, it is difficult to predict the level of punishment."
June 3 Local Elections Drew Tens of Billions of Won in Betting Volume
Much of the investigation appears to center on activity surrounding South Korea's June 3 local elections. Polymarket's election-related markets drew heavy interest from South Korean users, with betting volumes reportedly reaching tens of billions of won. Authorities noted that users accessed the platform directly, with no VPNs or IP-circumvention tools required. Polymarket also reportedly allowed Korean users to place bets using dollar-backed stablecoins without imposing meaningful restrictions.
Media Regulator Previously Examined Polymarket Operations
Earlier this year, South Korea's media regulator had already taken a look at Polymarket's operations. The move to a criminal probe signals the enforcement posture is hardening. Industry observers see this case as a potential regulatory precedent.
FAQ
What did South Korean police investigate regarding Polymarket users?
South Korean police opened the country's first criminal investigation targeting local users of Polymarket, the world's largest blockchain-based prediction market platform. The probe is being led by the Gangwon Provincial Police Agency following a request from South Korea's National Police Agency. Investigators are focusing on South Korean residents who allegedly used Polymarket to bet on various events, including the country's June 3 local elections.
Why do South Korean authorities consider Polymarket activity illegal gambling?
Under South Korean law, betting on platforms outside the state-run Sports Toto system is broadly treated as illegal gambling. South Korean authorities consider prediction market activity a form of private gambling, meaning users under investigation could face penalties under Article 246 of the Criminal Act, which carries fines of up to 10 million won.
How much betting activity occurred on Polymarket's South Korean election markets?
Polymarket's election-related markets drew heavy interest from South Korean users, with betting volumes reportedly reaching tens of billions of won surrounding the June 3 local elections. Authorities noted that users accessed the platform directly, with no VPNs or IP-circumvention tools required.
