The company's stock fell due to investigations involving singer G-Dragon and executive producer Yang Hyun-suk over copyright infringement allegations, disrupting a six-day stock rally driven by strong Q2 results.

At 9:22 a.m. on the 13th, YG Entertainment's stock was at ₩97,200, down ₩4,900 (4.80%) from the previous day. It opened slightly lower at ₩102,000 and dropped to an intraday low of ₩97,100, a 4.89% fall.

The decline contrasts with YG's recent performance. On August 8, YG reported a return to profitability in Q2, with ₩100.4 billion in revenue and ₩8.4 billion in operating profit. Net income was ₩11.2 billion, up year-on-year. On August 12, shares reached a 52-week high of ₩104,900.

Police sources state that Seoul’s Mapo Police Station began investigating after a November complaint by composer A, accusing G-Dragon and Yang Hyun-suk of unauthorized reproduction and distribution of his work.

YG Entertainment refuted the claims. As reported by Ilgan Sports, a company official explained, “This relates to a 2009 solo concert where two songs with the same title were mistakenly listed. It’s not unauthorized album reproduction.”

Police have interviewed involved parties and conducted two raids on YG Entertainment’s headquarters during the investigation.