Moon Da-hye, daughter of former President Moon Jae-in, walks out of the Yongsan Police Precinct in Yongsan District, Seoul, Oct. 18. Yonhap

Police on Friday referred the daughter of former President Moon Jae-in to the prosecution on suspicions of illegally operating a house-sharing business on the southern island of Jeju.

Moon Da-hye is accused of running an Airbnb business for the past two years at a house under her name in western Jeju without official registration in violation of the Public Health Control Act.

Moon reportedly pleaded guilty to the charge during police questioning earlier this week.

By law, those who fail to report their accommodation business are punishable by up to two years in prison or up to 20 million won ($14,276) in fines.

Moon is also undergoing a separate investigation for alleged drunk driving after her car collided with a taxi while changing lanes in Seoul's Itaewon district in early October. (Yonhap)