The decrease in YG Entertainment's stock value was triggered by revelations that both singer G-Dragon and the company's executive producer, Yang Hyun-suk, are subjects of a police inquiry regarding alleged copyright breaches. Previously, the entertainment company had enjoyed a six-day streak of stock gains, buoyed by strong second-quarter financial results.

At precisely 9:22 a.m. on the 13th, YG Entertainment's shares were priced at ₩97,200, reflecting a drop of ₩4,900 (or 4.80%) from the preceding session. Despite an initial opening at ₩102,000, the stock eventually hit a low point of ₩97,100 during intraday trading, representing a 4.89% fall.

This recent downturn stands in stark contrast to the company's previous strong performance. On August 8, YG Entertainment announced a return to profitability for the second quarter, reporting a consolidated revenue of ₩100.4 billion along with an operating profit of ₩8.4 billion. The company also recorded a net income of ₩11.2 billion, showing a positive shift from the previous year. On August 12, the shares reached a 52-week high of ₩104,900.

According to information from police sources, the Mapo Police Station in Seoul initiated an investigation after receiving a complaint from a composer, referred to as Composer A, in November of the previous year. The complaint accused G-Dragon and Yang Hyun-suk of infringing copyright laws by reproducing the composer's work without permission and distributing it within an album.

YG Entertainment has refuted these claims. As reported by Ilgan Sports, a company representative clarified, "The issue originates from a 2009 solo concert, where two songs with identical titles were mistakenly included in the setlist. This situation does not involve unauthorized reproduction of an album."

Reports indicate that the police have conducted interviews with individuals involved and executed two raids on the headquarters of YG Entertainment as part of their ongoing investigation.