Domestic Investors Bet 630 Billion Won on Political Events

Domestic investors have placed a cumulative bet of 630 billion won on future events, including political issues, on overseas prediction market platforms. From August 2023 to July this year, the amount traded by Korean investors on Polymarket related to political and social events accounted for about 74.5 billion won, or 12% of the total. Polymarket is a blockchain-based prediction market where the outcomes of events such as elections, interest rates, and international disputes are traded. Investors buy USD Coin (USDC) on domestic exchanges and then participate in Polymarket through personal wallets. Transactions are conducted by buying and selling 'Yes' or 'No' contracts. Interest in the 2025 presidential election is the highest, with trading volume reaching approximately 24.3 billion won, while 17 billion won was traded in the prediction market for the 2024 U.S. presidential election. The prediction market for the Seoul mayoral election saw participation from 406 individuals, recording a trading volume of 2.7 billion won. During the period of increased political uncertainty from March to June last year, Korean-related events accounted for 46-57% of investors' monthly trading volume. However, relevant domestic regulations are still not in place, leading the industry to call for the establishment of a regulatory framework.