South Korea has ordered internet service providers to block access to Polymarket, concluding that the prediction market giant constitutes an illegal gambling service under the country's existing laws.
The decision follows a review by the Korea Communications Commission, which said the platform facilitates gambling by allowing users to stake money on the outcomes of real-world events. Stakes can be funded via cryptocurrency on events such as elections, sporting contests, economic indicators and weather forecasts.
According to the regulator, Polymarket's winner-takes-all structure means financial gains and losses depend entirely on uncertain future events, bringing the service within the scope of both the Criminal Act and the National Sports Promotion Act. The commission also rejected arguments that the platform falls outside Korean jurisdiction because it no longer offers a Korean-language interface or accepts payments in Korean won.
Authorities noted that users were still able to wager on Korea-specific events, including predictions related to Seoul's August rainfall, reinforcing the decision to restrict domestic access.
The move follows months of increasing scrutiny. Earlier this year, South Korea's Broadcasting and Communications Deliberation Committee began reviewing Polymarket over potential gambling law violations, while police launched what is believed to be the country's first nationwide investigation into domestic users of the platform.
Under South Korean law, betting is generally prohibited outside government-authorised products such as Sports Toto, operated by the Korea Sports Promotion Foundation. Individuals found participating in illegal gambling can face fines of up to KRW10m.
The latest action also forms part of a broader crackdown on illegal online gambling. Earlier this month, authorities introduced a nationwide youth gambling reporting programme, expanding access to counselling, addiction screening and rehabilitation services.
South Korea joins a growing list of jurisdictions taking action against prediction market platforms. Countries including France, Australia, Ukraine and Brazil have also restricted access to Polymarket, while regulators in the United States continue to examine whether prediction contracts should be regulated as financial instruments or gambling products.
South Korean citizens can face fines of up to KRW10m (US$7,150.83) for illegal gambling under the Criminal Act
