The news that G-Dragon and YG Entertainment's executive producer, Yang Hyun-suk, are the subjects of a police probe into alleged copyright infringement has led to a downturn in YG Entertainment's stock price. This decline interrupts a six-day upward trend bolstered by robust second-quarter financial results for the company.

At 9:22 a.m. on the 13th, shares of YG Entertainment were being traded at ₩97,200, reflecting a decrease of ₩4,900 (4.80%) from the prior trading session. The stock started the day at ₩102,000 but fell to an intraday low of ₩97,100, showing a 4.89% decline.

This stock decline contrasts with the company's previously strong market performance. On August 8, YG announced a return to profitability in the second quarter, reporting consolidated revenue of ₩100.4 billion and an operating profit of ₩8.4 billion. The net income reached ₩11.2 billion, signaling a positive shift compared to the previous year. By August 12, their stock had climbed to a 52-week peak of ₩104,900.

Sources from the police have reported that the Mapo Police Station in Seoul initiated an investigation following a complaint made in November of the preceding year by a composer referred to as A. The complaint accused G-Dragon and Yang Hyun-suk of reproducing one of the composer's works without consent and distributing it as part of an album, allegedly violating copyright laws.

YG Entertainment has refuted these accusations. According to a statement provided to Ilgan Sports by a company representative, "This issue originates from a 2009 solo concert where two songs with identical titles were mistakenly included in the setlist. It is not an instance of unauthorized album reproduction."

The police have reportedly conducted interviews with individuals connected to the case and executed two raids at YG Entertainment's headquarters as part of their investigative efforts.