South Korean police have reportedly launched the country’s first illegal gambling probe into local Polymarket users, widening regulatory scrutiny of the decentralized prediction market.
The investigation is led by Gangwon Provincial Police and was requested by the National Police Agency, according to ChosunBiz.
Users may face fines of up to 10 million won ($6,500) under Article 246 of the Criminal Act covering gambling and habitual gambling. Under current law, Sports Toto is the state-authorized sports betting platform, while unauthorized online betting can be prosecuted under South Korean gambling laws.
The reported probe adds to a broader global crackdown on prediction markets, with several jurisdictions blocking or restricting access to Polymarket. Some countries have completely blocked or prohibited Polymarket, including Singapore, Poland, Portugal, Hungary, Ukraine, Brazil and Indonesia. Polymarket remains accessible in South Korea.
The news comes after President Lee Jae-myung’s ruling Democratic Party swept most major local elections held on Wednesday, while conservative Oh Se-hoon won another term as mayor of Seoul, Reuters reported.
Prediction market on whether Lee Jae-myung would be out as president of South Korea in 2026. Source: Polymarket.com
One Polymarket contract on whether Lee Jae-myung would be out as president saw nearly $54,000 in total trading volume, data shows.
Related: Polymarket users cry foul after Strategy sale market resolves to ‘no’
Political betting faces growing scrutiny
The latest probe adds to the growing regulatory scrutiny of political betting on Polymarket.
In January, US lawmakers proposed legislation aimed at restricting political prediction market trading by government officials after a Polymarket user netted over $400,000 on a contract related to the removal of then-Venezuelan President Nicolás Maduro, fueling insider trading concerns.
In May, the chair of the US House of Representatives’ Oversight and Government Reform Committee sent letters to the CEOs of Kalshi and Polymarket, questioning their response to the insider trading allegations on the platforms.
In response to the growing scrutiny, Polymarket said it was weighing the implementation of a mandatory identity verification system more in line with global Know Your Customer (KYC) verification standards, Cointelegraph reported on May 27.
Polymarket list of geoblocked countries and regions. Source: Polymarket.com
Polymarket said it was entirely geoblocked in 35 regions at the time of writing.
Magazine: Polymarket seeks Japan entry, Harvard dumps entire ETH position: Hodler’s Digest, May 17 – 23
