The stock price of YG Entertainment experienced a decline as news emerged that artist G-Dragon and the company's executive producer Yang Hyun-suk are subjects of a police investigation concerning alleged copyright infringement. This development came after the entertainment company had seen a six-day upward trend, buoyed by strong second-quarter financial results.

At 9:22 a.m. on the 13th, YG Entertainment's stock was trading at ₩97,200, a decrease of ₩4,900 (4.80%) from the previous trading session. The stock opened slightly lower at ₩102,000 and reached an intraday low of ₩97,100, reflecting a 4.89% decline.

This decline contrasts with the company's recent strong performance. On August 8, YG Entertainment announced a return to profitability for the second quarter, reporting ₩100.4 billion in consolidated revenue and ₩8.4 billion in operating profit. Additionally, net income reached ₩11.2 billion, showing a positive year-on-year change. The stock reached a 52-week high of ₩104,900 on August 12.

According to police sources, an investigation was launched by Seoul's Mapo Police Station following a complaint made in November last year by a composer identified as A. The composer alleged that G-Dragon and Yang Hyun-suk violated copyright law by reproducing and distributing one of his works without permission as part of an album.

YG Entertainment has contested the allegations. An official from the company, as reported by Ilgan Sports, stated, "This issue arises from a 2009 solo concert where two songs with identical titles were mistakenly included in the setlist. It is not a case of unauthorized album reproduction."

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