The stock depreciation coincides with reports that both G-Dragon and Yang Hyun-suk are subjects of a police investigation related to copyright infringement accusations. This downturn follows a period of six consecutive days of stock market gains driven by YG's robust second-quarter financial results.

At 9:22 a.m. on the 13th, shares of YG Entertainment were valued at ₩97,200, reflecting a decrease of ₩4,900 or 4.80% from the prior trading session. Initially opening slightly down at ₩102,000, the stock reached an intraday low of ₩97,100, equating to a 4.89% fall.

This stock price reduction is notably in contrast to YG Entertainment’s previous upward trajectory. On August 8, the company disclosed a return to profitability in the second quarter, with consolidated revenue of ₩100.4 billion and an operating profit of ₩8.4 billion. Additionally, net income was reported at ₩11.2 billion, indicating a positive shift year-on-year. On August 12, the stock reached a 52-week peak of ₩104,900.

Police inquiries initiated by Seoul’s Mapo Police Station stem from a complaint filed in November of the preceding year by a composer identified as A. The complaint alleges that G-Dragon and Yang Hyun-suk illegally reproduced and distributed one of his compositions as part of an album.

In response, YG Entertainment has refuted these claims. According to a statement reported by Ilgan Sports, a representative from the company explained, “This issue originated from a 2009 solo concert, where two songs sharing the same title were erroneously included in the setlist. This is not a case of unauthorized album reproduction.”

Law enforcement officials have reportedly conducted interviews with involved parties and executed two raids at YG Entertainment’s headquarters to further their investigation.