The market valuation of YG Entertainment experienced a downturn following revelations that both artist G-Dragon and the company's executive producer, Yang Hyun-suk, are subjects of a police probe concerning copyright infringement allegations. This development disrupts YG’s previous trend of a six-day stock market ascent, which had been bolstered by robust second-quarter financial results.

At 9:22 a.m. on the 13th, YG Entertainment's shares were quoted at ₩97,200, reflecting a decrease of ₩4,900 or 4.80% from the prior trading day. The stock opened at a slightly diminished ₩102,000, subsequently reaching an intraday nadir of ₩97,100, indicative of a 4.89% contraction.

This stock performance decline stands in stark contrast to the company's recent financial health. On August 8, YG reported a return to profitability for the second quarter, with consolidated revenue of ₩100.4 billion and operating profits totaling ₩8.4 billion. Additionally, net income grew to ₩11.2 billion, marking a positive year-over-year shift. The stock had previously attained a 52-week peak of ₩104,900 on August 12.

Per sources within the police department, the Mapo Police Station in Seoul initiated a formal inquiry following a complaint filed in November of the preceding year by composer A. The complaint alleges G-Dragon and Yang Hyun-suk's unauthorized use and distribution of a copyrighted work as part of an album.

In response to these allegations, YG Entertainment has issued a denial. According to a statement reported by Ilgan Sports, a representative clarified, “This issue originates from a 2009 solo concert, during which an error occurred with two songs of the same title being mistakenly included in the setlist. It does not pertain to unauthorized album reproduction.”

The police have purportedly conducted interviews with involved individuals and executed two searches of YG Entertainment’s headquarters as part of their investigative process.