The Korea Communications Standards Commission (KCSC) has decided to give Polymarket an opportunity to submit its views before determining whether to take corrective action against the operator.
The communications regulator said it will review the operator’s explanation and relevant materials before reaching a final decision.
The KCSC said the review aims to determine whether the service violates South Korean regulations and to gain a clearer understanding of how the platform operates.
Last month, local police launched an investigation into South Korean Polymarket users on suspicion of illegal gambling. The investigation is believed to be the first targeting Polymarket users in the country and covers individuals nationwide.
Under current legislation, betting on any platform other than Sports Toto, operated by the Korea Sports Promotion Foundation (KSPO), is prohibited. As a result, South Korean Polymarket users could face fines of up to KRW 10m under Article 246 of the Criminal Act for gambling or habitual gambling.
As Korean authorities continue to assess whether Polymarket falls within the scope of existing regulations, the outcome could establish an important precedent for how prediction market platforms are treated under the local law.
The case comes amid broader international debate over the regulatory status of prediction markets, which continue to expand despite concerns from regulators and safer gambling experts over whether they mimic traditional gambling.
During a panel discussion titled “Prediction Markets: Digital Engagement or Gambling Without Safeguards?” at iGB Live in London, industry speakers examined how these platforms should be regulated and whether existing safeguards are sufficient.
US senators John Curtis and Adam Schiff have called for a federal investigation into Polymarket after The Wall Street Journal reported that the prediction-market operator paid creators to promote staged betting content
