The decrease in YG Entertainment’s stock was triggered by news that both the prominent singer G-Dragon and Yang Hyun-suk, an influential figure within the company, are being investigated by the police for suspected copyright infringement. This development interrupted a positive trend for the company, which had been enjoying a six-day rise in stock prices due to robust earnings reported in the second quarter.

On the morning of the 13th, at 9:22 a.m., YG Entertainment's shares were priced at ₩97,200, representing a fall of ₩4,900 (4.80%) from the previous trading session. Initially opening at ₩102,000, the shares then plummeted to a low of ₩97,100, reflecting a 4.89% decrease for the day.

This downturn contrasted with YG Entertainment's recent period of strong financial performance. On August 8, the company revealed a return to profitability for the second quarter, with consolidated revenue reaching ₩100.4 billion and an operating profit of ₩8.4 billion. Net income was reported at ₩11.2 billion, marking a positive shift year-on-year. On August 12, the stock reached a 52-week peak of ₩104,900.

According to information from police sources, an inquiry was initiated by the Mapo Police Station in Seoul after receiving a complaint in November of the previous year from a composer identified as A. The composer accused G-Dragon and Yang Hyun-suk of infringing copyright by illegally reproducing and distributing his work as part of an album.

In response to these allegations, YG Entertainment has rejected the claims. A company representative, as reported by Ilgan Sports, explained, “The issue arose from a 2009 solo concert where two songs sharing the same title were accidentally included in the setlist. This situation does not involve unauthorized reproduction of an album.”

It has been reported that the police have conducted interviews with individuals associated with the case and executed two search operations at YG Entertainment’s headquarters as part of their ongoing investigation.