The announcement of a police investigation into G-Dragon and Yang Hyun-suk over alleged copyright violations has resulted in a drop in YG Entertainment's stock price. This investigation comes after a period where the company's stock had been performing well for six consecutive days, buoyed by impressive second-quarter financial results.

On the morning of the 13th, at 9:22 a.m., YG Entertainment's shares were priced at ₩97,200, representing a decrease of ₩4,900 or 4.80% from the previous day's close. The stock opened slightly lower at ₩102,000 and reached a low point of ₩97,100 during the trading session, reflecting a 4.89% reduction.

This downturn in stock price contrasts with YG Entertainment’s recent positive financial trajectory. On August 8, the company reported a return to profitability for the second quarter, with consolidated revenues amounting to ₩100.4 billion and an operating profit of ₩8.4 billion. Additionally, net income reached ₩11.2 billion, showing an improvement from the previous year. On August 12, the stock achieved a 52-week high at ₩104,900.

The investigation was initiated by Seoul’s Mapo Police Station after receiving a complaint in November last year. Composer A accused G-Dragon and Yang Hyun-suk of infringing on copyright law by replicating and distributing one of his compositions without permission as part of an album.

In response, YG Entertainment has refuted the claims. Speaking to Ilgan Sports, a representative from the company clarified that the issue arose from a 2009 solo concert where two tracks sharing the same title were accidentally listed in the setlist, emphasizing that it does not involve unauthorized reproduction for an album.

The police have reportedly interviewed individuals connected to the case and executed two raids on YG Entertainment's headquarters as a component of their ongoing investigation.