South Carolina has no phantom-license problem — the license is real, issued, and enforced. If you spear in salt water you need a Saltwater Recreational Fishing License; if you spear or gig nongame fish in fresh water you need a Freshwater Fishing License; 'all forms of gigging require a license.' The nuance in South Carolina is not law-vs-practice on paperwork — it is the sharp split between what 'spearfishing' and 'gigging' mean and where each is allowed. (s1, s4, s5)
In SALT water, spearfishing is a legitimate, well-established method. It is bounded by the same size, creel and season limits as any gear, and by a firm ban on bang sticks / powerheads in state waters (SC Code 50-5-110). The state's artificial-reef Special Management Zones are effectively reserved for handheld hook-and-line anglers and spearos — but even there, powerheads are excluded. Separately, South Carolina regulates 'gigging' (taking fish with a prong/spear/bow) with its own species rules: no flounder gigging in daylight, no shark gigging, and a December–February closure on gigging red drum and spotted seatrout, plus a Georgetown County daylight-gigging closure. The daylight flounder-gigging ban lives in SC Code 50-5-581, which expressly carves out underwater spearfishing — 'for the purposes of this section, gigging does not include underwater spear fishing' — so a submerged diver spearing flounder is not bound by that daylight clock (this is confirmed statutory language, not just an informal note). That carve-out is written into the flounder section specifically; a diver should not assume every gigging rule (e.g., the shark or red drum/seatrout gigging bans) contains the same words. (s2, s3, s9)
In FRESH water, South Carolina follows the common pattern: spears and gigs are 'nongame fishing devices,' so you may take rough/nongame fish with them but never game fish, and any game fish that ends up on your spear must be released. Two geography rules matter most: nongame devices are banned entirely in Game Zone 1 (the upstate corner in parts of Oconee, Pickens and Greenville counties) and may not be used in any SCDNR State-Managed Lake. Everywhere else in fresh water, with a freshwater license, spearing nongame fish is legal and needs no extra permit. (s5, s8)