The market saw a downturn in YG Entertainment's stock following revelations that both singer G-Dragon and the company's chief producer, Yang Hyun-suk, are subjects of a police investigation concerning copyright infringement accusations. This development interrupts the company's prior six-day upward trend, buoyed by robust earnings in the second quarter.

At 9:22 a.m. on the 13th, shares of YG Entertainment were priced at ₩97,200, reflecting a decrease of ₩4,900 or 4.80% from the previous day. The stock opened slightly below at ₩102,000 before hitting an intraday trough of ₩97,100, resulting in a 4.89% drop.

This negative shift contrasts with YG's recent financial performance. On August 8, YG disclosed a return to profitability for Q2, reporting consolidated revenue of ₩100.4 billion and an operating profit of ₩8.4 billion. The net income rose to ₩11.2 billion, reversing prior losses. On August 12, the stock reached a 52-week peak of ₩104,900.

As per police disclosures, the Mapo Police Station in Seoul initiated an investigation following a complaint filed in November last year. The complainant, identified as composer A, accused G-Dragon and Yang Hyun-suk of illegally reproducing and disseminating his work as part of an album without proper authorization.

YG Entertainment has refuted these claims. According to a statement in Ilgan Sports, a company representative clarified, "The issue originates from a 2009 solo concert where two songs were inadvertently listed with the same title in the setlist. This does not pertain to unauthorized album reproduction."

Reports indicate that police have interviewed involved parties and executed two raids on YG Entertainment's headquarters to advance their investigation.