What to know:
- South Korea blocks Polymarket after regulators classify it as an illegal gambling site.
- Telecom operators must enforce ISP-level restrictions on Polymarket access nationwide.
- VPN users could face fines of up to 10 million won under the South Korean Criminal Act.
South Korea’s media regulator voted on August 18, 2026, to block domestic access to Polymarket. It classified the decentralized prediction platform as an illegal gambling operator under the country’s Criminal Act following months of scrutiny.
According to a report, the Korea Communications Standards Commission approved the order after analyzing the trading mechanism of the platform. The procedure included user complaints, hearings, police, and national gambling authorities.
Regulators were concerned about the profit allocation based on the winner-takes-all principle. According to the regulators, such a contract creates an environment of speculation for users who bet on uncertain outcomes.
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Why South Korea Rejected Polymarket Defense
The examined markets covered politics, sports, elections, and weather events. Regulators said users could not influence outcomes, making the contracts similar to forms of illegal gambling.
Polymarket defended its operations as a non-custodial, peer-to-peer platform powered by smart contracts. It said users trade directly without placing funds under a central operator’s control.
The company also pointed to its removal of Korean-language services. It said the change showed the platform no longer promoted event contracts to South Korean residents.
The regulator rejected both arguments in its decision. It said technical decentralization does not exempt a service that creates an illegal gambling environment for local users.
Polymarket removed Korean support and hid Korea-specific markets in July 2026 while the hearing continued. Those measures preceded the commission’s final access-blocking order against the service.
One cited contract asked traders to predict August rainfall in Seoul. The committee treated that market as evidence that the service targeted people within South Korea.
How South Korea Will Enforce the Polymarket Block
Korean telecom firms must impose restrictions at the ISP level. This method will stop citizens from accessing the website through normal internet access services.
Users attempting access through virtual private networks to circumvent the ban could still be subject to legal proceedings. Section 246 of the Criminal Act enables fines of up to 10 million won, which is equivalent to about $6,500.
Following complaints from users, authorities initiated an official investigation in May 2026. In June, prosecutors extended the investigation by filing charges against individuals using the website.
Polymarket received more attention beyond South Korea. Regulators in New York investigated the company’s advertising practices, while in the US, the Commodity Futures Trading Commission warned individuals.
South Korea became part of other countries such as France, Germany, Australia, Indonesia, and India that banned Polymarket for its real-money contract betting on events.
Polymarket Faces Banking and Regulatory Scrutiny
The South Korean order adds concerns regarding the banking ties of the platform. JPMorgan reportedly maintained its relationship with the company despite withdrawing banking access earlier.
The White House was scheduled to meet with executives of crypto and prediction markets on August 19. The meeting was to take place a day after the announcement from South Korea regarding restrictions on Polymarket.
Regulators in the US were reviewing the way prediction platforms advertised their services. The CFTC had warned Polymarket and its competitor Kalshi against using American odds on gambling as the state scrutiny continued.
These developments represent increased legal scrutiny of event contract platforms in Asia, Europe, and North America.
Regulators continue to assess whether real-money prediction products adhere to gambling, advertising, and consumer protection regulations.
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