The stock price of YG Entertainment fell after reports emerged that singer G-Dragon and executive producer Yang Hyun-suk are under police scrutiny for alleged copyright violations. This development occurred against the backdrop of a six-day upward trend attributed to strong performance in the second quarter.

At 9:22 a.m. on the 13th, trading of YG Entertainment shares was noted at ₩97,200, indicating a drop of ₩4,900, or 4.80%, compared to the previous session. The stock opened marginally lower at ₩102,000 before falling to an intraday low of ₩97,100, representing a 4.89% decrease.

This decline contrasts with YG Entertainment's recent robust performance. On August 8, the company reported a return to profitability for the second quarter, with consolidated revenue of ₩100.4 billion and an operating profit of ₩8.4 billion. Net income reached ₩11.2 billion, showing year-on-year improvement. The stock attained a 52-week high of ₩104,900 on August 12.

According to police, an investigation was initiated by Seoul’s Mapo Police Station after a complaint was lodged in November last year by composer A. The complaint alleges that G-Dragon and Yang Hyun-suk breached copyright law by replicating and distributing one of the composer's works without permission for an album.

YG Entertainment rejected these claims. As reported by Ilgan Sports, a company spokesperson stated, "This issue originates from a 2009 solo concert where two songs with the same title were accidentally included in the setlist. It does not involve unauthorized album reproduction."

Reports indicate that police have conducted interviews with involved parties and executed two raids on YG Entertainment's headquarters as part of their investigation.