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Background of the Polymarket Investigation

Polymarket is an overseas prediction market platform where users trade on the probability of future events, such as election results, economic indicators, and policy decisions.

From a user’s perspective, Polymarket may appear closer to an investment platform or an information-based trading service than a conventional gambling site.

However, the fact that a platform operates overseas does not automatically exclude the possibility of criminal liability under Korean law.

If a user accesses the platform from Korea, deposits cryptocurrency such as USDC, and gains or loses money depending on the outcome of future events, Korean investigative authorities may review whether the conduct constitutes gambling under the Korean Criminal Act.

Recent reports indicate that the Gangwon Provincial Police Agency’s Cyber Investigation Division has been investigating Korean Polymarket users on suspicion of gambling. The police are reportedly identifying users by tracing cryptocurrency transfers from domestic virtual asset exchanges.

In other words, the belief that an overseas service is lawful abroad does not necessarily mean that using the service from Korea is also free from criminal risk.
 

Elements of Gambling Under Korean Criminal Law

Article 246 of the Korean Criminal Act provides punishment for gambling and habitual gambling.

A person who gambles may be punished by a fine of up to KRW 10 million. If the conduct is considered habitual gambling, the punishment may be imprisonment for up to three years or a fine of up to KRW 20 million.

Under Korean Supreme Court precedent, gambling is generally understood as an act of risking property or economic value and determining gain or loss by chance.

Whether Polymarket use satisfies these elements may depend on the following factors.
 

The Key Issue: Chance

The most important legal issue is whether Polymarket trading involves “chance” in the sense required for gambling under Korean law.

The Korean Supreme Court has held that even where a participant’s skill or ability affects the outcome, gambling may still be found if the result is influenced, even in part, by circumstances of chance.

Supreme Court Decision 2006Do736, decided October 23, 2008

This means that even if a user analyzes political, economic, or market information before making a prediction, the fact that the final outcome depends on external events outside the user’s control may still raise a gambling-law issue.

This is likely one of the reasons investigative authorities may view Polymarket differently from ordinary financial investment.

At the same time, there does not yet appear to be a publicly confirmed final court or prosecution decision in Korea directly addressing whether Polymarket use itself constitutes gambling.

An investigation or summons does not mean that a user has already been found guilty. The legal assessment may vary depending on the user’s specific circumstances, including how and why the platform was used.
 

Key Points for Users Under Investigation

In a Polymarket-related investigation, the following issues should be carefully reviewed.


1. Use of the platform and criminal liability are separate issues

The existence of cryptocurrency transfer records does not automatically mean that gambling has been legally established.

Admitting that a platform was used is different from admitting that the conduct satisfies the legal elements of gambling.


2. The user’s purpose and understanding matter

It is important to explain why the user accessed Polymarket, how the user understood the service, and whether the user reasonably perceived it as a prediction market or investment-like platform.

This should be organized before attending a police interview.


3. The temporary amusement exception may need to be reviewed

Under Article 246 of the Korean Criminal Act, conduct that is merely temporary amusement may be excluded from punishment.

Whether this exception may apply depends on the number of transactions, the amount involved, the period of use, and the overall pattern of activity.


4. Records should be preserved

If investigative authorities have already obtained on-chain transaction data or exchange deposit and withdrawal records, deleting or modifying materials may be interpreted unfavorably.

Rather than altering records, users should preserve relevant materials and organize the facts accurately.
 

How Decent Law Firm Can Assist

Polymarket-related gambling investigations require a combined understanding of virtual asset transactions, Korean gambling law, and criminal investigation strategy.

Decent Law Firm’s virtual asset team has practical experience in handling early-stage investigations involving Polymarket and other overseas crypto-related platforms.

If you have received a summons or are concerned that your Polymarket activity may become subject to investigation in Korea, it is important to review your legal position before confirming or attending a police interview.

Early legal review can help determine which facts should be clearly explained, which legal issues may be disputed, and how to avoid statements that could be misunderstood during the investigation.

This content is provided for general informational purposes only and does not constitute legal advice for any specific case.