The stock price of YG Entertainment declined as news emerged regarding police inquiries into singer G-Dragon and the company's executive producer, Yang Hyun-suk, concerning alleged copyright violations. This development follows a six-day increase in the company's stock, attributed to strong second-quarter earnings.

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

This decline contrasts with the company's recent positive performance. On August 8, YG reported a return to profitability in Q2, with consolidated revenue of ₩100.4 billion and an operating profit of ₩8.4 billion. The net income was ₩11.2 billion, showing a positive year-on-year change. On August 12, the stock achieved a 52-week high of ₩104,900.

According to police sources, an investigation was initiated by Seoul’s Mapo Police Station after receiving a complaint in November of the previous year. Composer A accused G-Dragon and Yang Hyun-suk of violating copyright law by reproducing and distributing one of his works without permission in an album.

YG Entertainment refuted the allegations. A statement from the company, reported by Ilgan Sports, clarified, "This issue originates from a 2009 solo concert where two songs with the same title were incorrectly included in the setlist. It is not related to unauthorized reproduction of an album."

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