Exclusive: South Korean Watchdog Opens Review of Polymarket Over Illegal Gambling Concerns

Polymarket faces review as betting-style prediction market

South Korean watchdog probes gambling and legal violations

Market surges as regulators step up scrutiny worldwide

"It could be pushed out of the Korean market"

This article appeared on the Bloomingbit website at 3:05 p.m. on May 21, 2026.

South Korea's Korea Communications Standards Commission has begun a review of global prediction-market platform Polymarket. The move is intended to determine whether the service constitutes an illegal gambling site under domestic law.

A commission official told Bloomingbit on May 21 that a complaint involving Polymarket had recently been filed, prompting the review. The agency is also examining overseas regulatory cases and assessing whether the platform could be judged to promote gambling, the official added.

Polymarket is a blockchain-based prediction market where users stake money on the outcome of specific events, including U.S. presidential elections, interest-rate decisions, sports matches and cryptocurrency prices. Users place real-time bets using stablecoins and receive payouts based on the actual result.

The platform is currently accessible in South Korea without significant restrictions and offers Korean-language service. Even if it operates on overseas servers, it could still fall within the commission's regulatory scope if it supports Korean and targets users in the country.

Unlike conventional illegal betting sites, however, Polymarket takes the newer form of a prediction market, suggesting the legal review may require greater caution. The platform differs from a typical gambling site and requires a detailed review, the commission official said. At the same time, it could still be viewed as a new type of gambling-related site.

The market for such prediction platforms is expanding rapidly. According to Bernstein, global prediction-market trading volume tripled from a year earlier to $51 billion last year. It is forecast to reach $240 billion this year, sustain annual growth of about 80%, and grow to $1 trillion by 2030.

As the market expands, regulators in multiple countries are moving faster as well. The concern is that prediction markets blur the line between financial investment and speculative gambling. France, Germany, Italy, India, Brazil, Ukraine, Australia and Argentina have already classified Polymarket as an illegal gambling site and fully blocked access.

Regulatory pressure is also mounting in the US. State governments including Minnesota, Wisconsin and Nevada have concluded that sports-event contracts on prediction-market platforms violate gambling laws, and have issued cease-and-desist orders or filed lawsuits.

Industry participants say the commission's review could lead to tougher measures in South Korea, including a block on access to Polymarket. Jin Hyun-soo, managing partner at Decent Law Firm, told Bloomingbit that the commission could block access if Polymarket offers Korean-language services or conducts business activities in South Korea. If the platform continues operating without reviewing domestic regulations, it could effectively be pushed out of the Korean market, he said.