The police have forwarded a case to the prosecution involving a housing law violation by a former employee of an asset management firm at the center of the Seongnam development corruption scandal.

The Gyeonggi Nambu Provincial Police Agency said on Monday that it has sent the case in which the daughter of former special prosecutor Park Young-soo purchased an apartment from her employer at the time, Hwacheon Daeyu.

The company is alleged to have sold the apartment to Park's daughter June 2021, in violation of the Housing Act provision requiring units subject to canceled sales to be offered on the market again.

The prosecution is currently looking into whether the company received any favors from the special prosecutor in exchange for the apartment deal.

The scandal that saw Hwacheon Daeyu and other firms reap substantial profits from their investments has drawn significant media attention for its connection to current Democratic Party chair Lee Jae-myung, who was Seongnam mayor at the time of the project's launch.