The downturn in YG Entertainment’s stock price was triggered by reports that both G-Dragon, a prominent artist under the label, and Yang Hyun-suk are subjects of police probes related to suspected copyright breaches. This development interrupts the company’s six-day streak of stock value gains, which had been supported by robust second-quarter financial results.

At 9:22 a.m. on the 13th, YG Entertainment's shares were trading at ₩97,200, reflecting a decrease of ₩4,900 or 4.80% compared to the previous trading session. Initially opening at ₩102,000, the stock plummeted to an intraday low of ₩97,100, resulting in a 4.89% decrease.

The current decrease contrasts sharply with YG Entertainment's recent financial successes. On August 8, the company disclosed gains in the second quarter, reporting consolidated revenue of ₩100.4 billion and an operating profit of ₩8.4 billion. The net income also showed a positive shift, reaching ₩11.2 billion year-over-year. Furthermore, on August 12, the stock achieved a 52-week peak at ₩104,900.

Police investigations, reportedly initiated by Seoul’s Mapo Police Station, are based on a complaint filed in November last year by a composer identified as A. The complaint alleges that G-Dragon and Yang Hyun-suk breached copyright regulations by reproducing and distributing the complainant's work without proper authorization as part of an album.

YG Entertainment has refuted these allegations. An official statement quoted by Ilgan Sports asserts, “This incident traces back to a 2009 solo concert, where two songs sharing the same title were mistakenly included in the setlist. It does not involve unauthorized album reproduction.”

Law enforcement authorities have reportedly conducted interviews with involved individuals and executed two raids on the headquarters of YG Entertainment as part of their investigative efforts.