Polymarket logo appears in this illustration taken April 22.REUTERS/YONHAP
Korea will block access to Polymarket, an overseas prediction market platform that has drawn controversy over concerns that it encourages gambling, according to the Korea Media and Communications Commission on Tuesday.
“Under the Criminal Act, Polymarket constitutes information that facilitates gambling or is intended to provide a venue for gambling, as well as information intended for activities similar to sports betting that fall under the National Sports Promotion Act,” the commission said.
With the decision, internet service providers in Korea will block access to Polymarket.
Gambling is illegal for Korean citizens under the country's Criminal Act, which states that "a person who commits the offense of gambling shall be punished by a fine not exceeding ten million won [$7,000]."
Polymarket is a U.S. prediction market platform where users trade on the outcomes of real-world events. Users can bet on a wide range of topics, from elections in different countries and World Cup matches to different countries’ central bank interest rate decisions, a potential cease-fire in the Middle East and whether the Strait of Hormuz will return to normal. In January, a U.S. soldier reportedly used classified information to win more than $400,000 on the platform betting on the raid to capture Venezuelan President Nicolás Maduro.
Transactions are made using cryptocurrency.
“Polymarket’s winner-take-all structure encourages gambling by making users’ financial gains or losses depend heavily on the outcomes of events they cannot control, such as politics, the economy, international affairs, sports, elections and weather,” the commission said.
The platform, however, argued that Korean law does not apply.
During a hearing on July 6, Polymarket said it had removed its Korean-language service and does not allow payments in Korean won. The company argued that it therefore does not fall under the Act on Promotion of Information and Communications Network Utilization and Information Protection.
The prediction market app Polymarket is displayed on a mobile phone on April 16.AP/YONHAP
Polymarket also argued that it does not directly collect or manage users’ funds or issue sports betting tickets, and therefore does not meet the requirements for violations of the Criminal Act or National Sports Promotion Act.
The commission rejected those arguments.
“Companies cannot avoid Korean law simply because of technical features or the way they provide their services, such as whether they offer a Korean-language service,” the commission said.
The commission also cited the availability of bets on Korea-specific topics, notably “Seoul rainfall in August,” as grounds for blocking the platform.
Around 30 countries, including France and Australia, have already blocked access to Polymarket.
“We consulted with the Korean National Police Agency, the National Gambling Control Commission and the Korea Sports Promotion Foundation before reaching our decision,” the commission said. “The relevant agencies expressed the view that Polymarket’s operations could constitute the operations of a gambling venue or gambling under Korean law.”
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
