South Korea delays Polymarket gambling probe, hearing set before corrective action

South Korea has delayed enforcement against prediction market platform Polymarket and opened a formal hearing so the company can respond to concerns that it may breach gambling laws. The Broadcasting, Media and Communications Review Committee will first verify Polymarket’s legality and how the service is operated before issuing any “corrective request.” The move follows an earlier police investigation into local Polymarket users over alleged illegal election-related gambling, with Gangwon Provincial Police beginning what was described as the country’s first such probe in early June. Under Korea’s National Gambling Control Commission Act, penalties can include fines up to 10 million won, imprisonment or higher fines for habitual gambling, and heavier punishment for operating a profitable gambling venue. Polymarket says it uses geo-blocking (33 countries) and region restrictions to comply with sanctions, financial rules, gambling/prediction market regulations, and AML/KYC requirements. For traders, the key is regulatory uncertainty: the hearing postpones a final decision, but ongoing cross-border scrutiny (EU ESMA guidance on event-based contracts under MiFID II, and reports of CFTC investigation in the US) keeps the sector’s risk elevated. Risk watch: if regulators treat some prediction-market offerings as regulated gambling or financial products, access and liquidity for platforms like Polymarket could tighten quickly, even before any final ruling.