Shares of YG Entertainment experienced a decline as news emerged that singer G-Dragon and the company's executive producer, Yang Hyun-suk, were under police scrutiny over possible copyright violations. This event followed a six-day period of stock gains buoyed by the company's robust second-quarter financial results.

At 9:22 a.m. on the 13th, YG Entertainment's stock was priced at ₩97,200, reflecting a decrease of ₩4,900 (4.80%) from the day before. The stock opened at ₩102,000 and reached an intraday low of ₩97,100, culminating in a 4.89% reduction.

This downturn contrasts with the company’s recent positive trend. On August 8, YG Entertainment reported a return to profitability in the second quarter, with consolidated revenue of ₩100.4 billion and an operating profit of ₩8.4 billion. The net income was ₩11.2 billion, showing a year-on-year improvement. On August 12, the stock achieved a 52-week peak at ₩104,900.

According to police sources, the Mapo Police Station in Seoul commenced an inquiry after receiving a complaint last November from a composer, referred to as "A," who accused G-Dragon and Yang Hyun-suk of breaching copyright law by replicating and distributing his work without permission as part of an album.

YG Entertainment has refuted these claims. In a statement quoted by Ilgan Sports, a company representative explained, "The issue arises from a 2009 solo concert where two songs with identical titles were erroneously included in the setlist. This is not a matter of unauthorized album reproduction."

Authorities have reportedly conducted interviews with individuals involved and executed two searches at YG Entertainment's headquarters as part of the ongoing investigation.