Summary
- The Broadcasting and Communications Review Committee said it approved a corrective order to block domestic access to prediction market platform Polymarket.
- The committee said Polymarket constituted information related to aiding gambling and establishing a gambling venue under criminal law, as well as so-called "similar acts" under the National Sports Promotion Act.
- Related agencies said Polymarket's operating model could fall under establishing a gambling venue and other gambling offenses under South Korean law.
South Korea will block domestic access to prediction market platform Polymarket after regulators concluded it effectively provides a gambling environment for local users.
News1 reported on August 18 that the Broadcasting and Communications Review Committee approved a corrective order to block access to Polymarket at a subcommittee meeting on telecommunications review.
The committee determined that Polymarket constitutes information that aids gambling or is intended to establish a gambling venue under the criminal code. It also said the platform falls under information intended for so-called "similar acts" under the National Sports Promotion Act.
The committee said Polymarket encourages gambling instincts because users' financial gains and losses depend on the outcome of events beyond their control. In turn, that creates a winner-takes-all profit-and-loss structure. The committee also cited the platform's operating model, saying Polymarket's operator manages the overall platform, including the creation of markets and the setting of trading rules, while providing systems for digital-asset deposits, withdrawals and settlement.
Before making its decision, the committee collected views from relevant agencies including the National Police Agency, the National Gambling Control Commission and the Korea Sports Promotion Foundation. Those agencies are said to have told the committee that Polymarket's operating model could amount to establishing a gambling venue or other gambling offenses under South Korean law.
South Korea is not the only country to move against Polymarket. France, Australia and Germany have previously blocked access to the platform.
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