The decline in YG Entertainment’s stock price was triggered by the news that both the famous artist G-Dragon and the company's executive producer, Yang Hyun-suk, are subjects of a police investigation concerning copyright infringement allegations. Previously, the company had seen six consecutive days of stock price increases, which were driven by robust second-quarter financial results.

At precisely 9:22 a.m. on the 13th, shares of YG Entertainment were priced at ₩97,200, reflecting a drop of ₩4,900, or 4.80%, from the prior trading session. The stock had initially opened slightly lower at ₩102,000 and reached a low of ₩97,100 during the day, representing a 4.89% fall.

This downturn contrasts sharply with YG Entertainment’s recent financial success. On August 8, the company disclosed a return to profitability in the second quarter, achieving consolidated revenues of ₩100.4 billion and an operating profit of ₩8.4 billion. Additionally, net income reached ₩11.2 billion, signaling a positive shift compared to the previous year. Notably, on August 12, the stock price soared to a 52-week high of ₩104,900.

According to sources within the police, an investigation was initiated by the Mapo Police Station in Seoul following a complaint made in November of the previous year by a composer referred to as Composer A. The complaint accused G-Dragon and Yang Hyun-suk of unlawfully reproducing a piece of his work without permission and distributing it in an album.

YG Entertainment has refuted the accusations. As reported by Ilgan Sports, a representative from the company stated, "The issue arose from a 2009 solo concert where two songs with identical titles were mistakenly included in the setlist. This is not a situation involving unauthorized album reproduction."

Reports indicate that the police have conducted interviews with individuals involved and executed two searches at YG Entertainment's headquarters to further the investigation.