South Korean government is reviewing how the country will regulate the prediction market Polymarket. They want to know if it can be considered a gambling site under the law.
South Korea Communications Standards Commission confirmed that a complaint had been made about Polymarket and that an investigation is currently under way. Investigators will look into how other areas are regulating Polymarket, and if it might be seen as encouraging gambling.
According to an official from the Commission, Polymarket is not like gambling sites that are usually illegal, however, a detailed legal review is necessary to make sure of this. They also seem to still be deciding if Polymarket can be classified within a separate type of gambling.
To make things less complicated for Polymarket’s investigation is the fact that the site can still be accessed from South Korea and has a full Korean-language version. The law says that overseas businesses will be regulated if they provide services for consumers in South Korea.
Jin Hyun-soo, managing partner at Decent Law Firm, told Bloomingbit that South Korean regulators could block the platform if it continues providing Korean-language services without complying with domestic regulations. He added that failing to engage with local authorities could eventually force Polymarket out of the Korean market.
