South Korea has given prediction market platform Polymarket an opportunity to defend its business before regulators decide whether to determine if the platform crosses the boundaries of the country's gambling laws.

The Broadcasting, Media and Communications Review Committee said on Monday it will hear Polymarket's position before deciding whether to issue a corrective request against the platform.

"We decided to provide an opportunity for Polymarket to submit its opinion to thoroughly verify the legality of Polymarket and the way the service is operated."

The move suggests South Korean authorities are weighing a more measured approach before determining whether restrictions should be imposed on one of the world's largest prediction market platforms.

Regulators examine whether Polymarket breaches gambling laws

The review centers on South Korea's National Gambling Control Commission Act, which classifies online services facilitating speculative gambling as illegal gaming businesses and grants authorities broad powers to investigate and combat such activities.

Under South Korea's Criminal Act, gambling can result in fines of up to 10 million won (around $6,500), while habitual gambling carries penalties of up to three years in prison or fines of up to 20 million won. Operating a gambling business for profit can result in prison terms of up to five years or fines of up to 30 million won.

Polymarket already faces access restrictions across 33 jurisdictions, including the United States, the United Kingdom, France, Germany, Brazil, Singapore, Japan and Australia, reflecting growing regulatory scrutiny of prediction markets worldwide.

The hearing marks a notable escalation in South Korea's approach. Rather than focusing solely on local users, regulators are now examining whether the platform itself complies with Korean law.

Authorities had previously targeted individuals using Polymarket. On June 5, Gangwon Provincial Police launched what local media described as South Korea's first illegal gambling investigation into Polymarket users over election-related prediction markets after receiving a request from the National Police Agency.

Polymarket says restrictions are already built into the platform

Polymarket says its geographic restrictions are designed to comply with sanctions, local financial regulations, gambling and prediction market laws, as well as anti-money laundering and Know Your Customer requirements.

Beyond restricting access in dozens of countries, the platform also blocks certain regions within otherwise permitted jurisdictions, including Alberta, British Columbia, Ontario and Quebec in Canada, along with Crimea, Donetsk and Luhansk in Ukraine.