The announcement that singer G-Dragon and Yang Hyun-suk, YG Entertainment's executive producer, are subjects of a police probe for suspected copyright breaches has led to a decrease in the company's stock price. This development interrupts the momentum the agency had gained over a six-day period, bolstered by robust second-quarter financial results.

On the morning of the 13th, at precisely 9:22 a.m., YG Entertainment's stock was trading at ₩97,200, reflecting a decrease of ₩4,900 or 4.80% from the previous day's close. Initially opening at ₩102,000, the stock experienced a decline to an intraday low of ₩97,100, signifying a 4.89% downturn.

This downward trend is in stark contrast to YG Entertainment's recent positive trajectory. On August 8, the company reported a return to profitability for the second quarter, with consolidated revenue reaching ₩100.4 billion and an operating profit of ₩8.4 billion. Notably, net income rose to ₩11.2 billion, showing improvement from the previous year. On August 12, the stock ascended to a 52-week peak of ₩104,900.

According to police accounts, an investigation was initiated by Seoul’s Mapo Police Station upon 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 laws by unauthorized reproduction and distribution of his work within an album.

In response to these allegations, YG Entertainment has refuted any wrongdoing. A company representative, as reported by Ilgan Sports, clarified, "The issue originated from a solo concert in 2009, where two songs sharing the same title were accidentally included in the setlist. This situation does not pertain to unauthorized album reproduction."

Reports indicate that law enforcement has conducted interviews with individuals connected to the case and executed two searches at the headquarters of YG Entertainment as part of their continuing investigation.