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South Korean authorities have escalated their investigation into Polymarket by summoning domestic users suspected of participating in illegal gambling through the prediction-market platform.

Police have reportedly sent notices to a broad group of South Korean Polymarket users as the country continues to examine whether trading contracts tied to elections, sports and other real-world events violates its strict gambling laws.

The latest development puts individual users under scrutiny after regulators had already taken action against access to the platform.

Police Investigation Expands to Polymarket Users

The investigation was launched after South Korean authorities began examining Polymarket activity involving local residents.

In June, the Gangwon Provincial Police Agency reportedly opened an investigation into South Korean users following a request from the National Police Agency. Authorities were particularly interested in election-related prediction markets and whether users’ transactions could constitute illegal gambling under Article 246 of the Criminal Act.

Under South Korean law, ordinary gambling can be punished by a fine of up to 10 million won, while habitual gambling carries more severe penalties.

The latest summons indicate that the investigation is moving beyond a regulatory review of the platform itself and toward potential enforcement against individual participants.

Why South Korea Considers Polymarket Gambling

Polymarket describes itself as a prediction market rather than a traditional betting operator. Users trade contracts based on the outcomes of future events, with markets covering elections, sports, economics, weather and other subjects.

South Korean authorities, however, have questioned whether the distinction makes a legal difference.

Regulators have focused on the fact that users put money at risk based on uncertain outcomes and can receive financial gains or losses depending on how those events are resolved. Authorities have also examined Polymarket’s role in creating markets, establishing trading rules, facilitating transactions and settling positions.

This approach means that the use of blockchain technology or a non-custodial structure does not automatically protect the platform or its users from South Korean gambling regulations.

Polymarket Has Already Been Targeted by Regulators

The investigation into users follows a broader regulatory campaign against Polymarket in South Korea.

In August, the Korea Media and Communications Standards Commission determined that the platform provided an illegal gambling environment for domestic users and ordered access to be blocked. Authorities concluded that parts of Polymarket’s operation could fall under provisions covering gambling assistance and the operation of gambling venues.

Polymarket had argued that it was not operating a conventional gambling service. The company pointed to its non-custodial architecture, the use of smart contracts and the absence of Korean-won payments. It had also removed its Korean-language service.

South Korean regulators did not consider those measures sufficient to remove the platform from the scope of domestic law.

Election Markets Put Polymarket Under the Spotlight

Election-related contracts have been particularly important in the South Korean case.

Local users reportedly traded prediction markets linked to the country’s June 3 elections. The activity attracted regulatory attention because South Korea maintains a highly restrictive gambling framework in which only specifically authorized forms of betting are permitted.

Reports indicated that Polymarket’s Seoul mayoral election market alone generated tens of millions of dollars in trading volume.

For authorities, the size of these markets has added to concerns about whether prediction contracts should be treated as a financial product or as a form of gambling.

What the Summons Could Mean for Users

The police action creates uncertainty for South Koreans who previously used Polymarket without considering their activity to be gambling.

Users who receive a summons could be asked to explain their transactions and involvement with prediction markets. Potential liability will depend on the facts of individual cases and how authorities ultimately apply South Korean gambling law.

Importantly, being summoned does not mean that a user has been found guilty of an offense. The investigation is still part of the legal process.

The case could nevertheless become an important test of how South Korea applies traditional gambling laws to blockchain-based prediction markets.

A Wider Regulatory Challenge for Prediction Markets

South Korea is not the only jurisdiction questioning whether prediction markets should be treated as gambling.

Polymarket has faced restrictions and regulatory scrutiny in multiple countries as authorities examine its sports, political and event-based contracts. The South Korean case is particularly significant because regulators are examining both the platform and its users.

The outcome could establish a precedent for other decentralized prediction-market services operating through blockchain infrastructure.

For Polymarket, the latest summons represent another escalation in a dispute over whether its products should be regulated as financial markets or treated as unauthorized gambling.

Source: https://biz.chosun.com/en/en-finance/2026/09/08/HDY7F5SAHBBQXNAPSCHZMFYR6E/