The share price of YG Entertainment fell amid reports that G-Dragon, a well-known singer, and Yang Hyun-suk, the company's executive producer, are under police scrutiny for alleged copyright violations. This followed a period of six consecutive days of stock gains driven by positive second-quarter financial results.

At 9:22 a.m. on the 13th, YG Entertainment's stock was valued at ₩97,200, which represents a decrease of ₩4,900 (4.80%) from the previous trading day. The stock opened at ₩102,000 and reached an intraday low of ₩97,100, reflecting a 4.89% drop.

This decline contrasts with the company's recent financial achievements. On August 8, YG Entertainment reported a return to profitability for the second quarter, with a consolidated revenue of ₩100.4 billion and an operating profit of ₩8.4 billion. Net income was ₩11.2 billion, indicating a positive year-on-year change. On August 12, the stock achieved a 52-week high of ₩104,900.

According to police reports, the Mapo Police Station in Seoul initiated an investigation after receiving a complaint in November last year from a composer identified as A. The composer claimed that G-Dragon and Yang Hyun-suk infringed copyright law by reproducing and distributing one of his works without permission as part of an album.

YG Entertainment has refuted these claims. As reported by Ilgan Sports, a company representative stated, "This issue arose from a 2009 solo concert where two songs sharing the same title were mistakenly included in the setlist. It does not involve unauthorized album reproduction."

Police actions reportedly include interviews with individuals connected to the case and conducting two raids at YG Entertainment's headquarters as part of the investigation.