TLDR
- South Korean police booked 26 Polymarket users on suspicion of illegal gambling.
- Authorities referred 18 users to prosecutors as the investigation moves into a new stage.
- The 26 users placed about 17.6 billion won ($12.7 million) in combined wagers on Polymarket.
- Police argue Polymarket contracts qualify as gambling under Article 246 of South Korea’s Criminal Act.
- The users dispute that view, arguing Polymarket works more like a crypto derivatives market because contracts can trade before expiry.
- South Korea had already ordered domestic access to Polymarket blocked in August, adding pressure on the prediction market platform.
South Korean police have booked 26 local Polymarket users on suspicion of illegal gambling, extending a wider crackdown on prediction markets. Authorities have already referred 18 of those users to prosecutors, according to figures from the National Police Agency.
The cases focus on whether Polymarket event contracts count as gambling under South Korean law or resemble financial derivatives. That legal question may become central if prosecutors take the cases to court and seek penalties against the users.
South Korea Polymarket Cases Move to Prosecutors
The Gangwon Provincial Police Agency’s cyber investigation unit examined 26 users as of September 15. Together, they placed about 17.6 billion won, or roughly $12.7 million, in wagers across political, economic, and social markets.
One user placed cumulative bets worth about 5.7 billion won, close to $4.1 million. Police used open-source intelligence and public blockchain records to trace wallet activity and connect transactions to individual users.
Investigators say Polymarket contracts fall under Article 246 of South Korea’s Criminal Act. The provision covers gambling involving property placed on uncertain outcomes that participants cannot control.
Police also point to court precedent that treats staking assets on uncertain events as gambling. Prosecutors will now review the 18 cases and decide whether to bring formal charges under South Korean law.
Users Dispute Gambling Classification
The 26 users argue that Polymarket operates more like a crypto derivatives market. They note that contracts trade through an order book and that users can close positions before an event ends.
That structure differs from a traditional fixed bet, where participants normally wait for a final result. South Korean courts may need to decide whether those trading features change the legal classification of prediction market contracts.
The cases follow an August order from South Korea’s media regulator that told internet providers to block domestic access to Polymarket. The regulator said the platform created an illegal gambling environment for local users.
Polymarket argued that it does not offer Korean-language services, does not accept won payments, and uses a non-custodial model. Regulators rejected that position, while the current police cases now shift attention toward individual users and how courts will treat prediction market contracts. Court proceedings could clarify how local law treats such contracts in the coming months.
