The decrease in YG Entertainment's stock was prompted by the revelation that artist G-Dragon, alongside the company's executive producer Yang Hyun-suk, faces a police probe regarding alleged copyright breaches. This investigation emerged despite the company recently enjoying a six-day upward trend bolstered by robust second-quarter financial results.

At 9:22 a.m. on the 13th, shares of YG Entertainment were valued at ₩97,200, marking a decline of ₩4,900 or 4.80% from the prior session. Initially opening at a slightly diminished rate of ₩102,000, the stock price fell to a low of ₩97,100 during the day's trading, representing a 4.89% reduction.

This downturn starkly contrasts with the company's recent financial achievements. On August 8, YG announced a return to profitability in the second quarter, reporting consolidated revenues of ₩100.4 billion and an operating profit of ₩8.4 billion. Net income was recorded at ₩11.2 billion, indicating a positive shift compared to the previous year. Notably, on August 12, the stock reached a 52-week peak of ₩104,900.

Based on information from police authorities, an investigation by Seoul’s Mapo Police Station commenced following a complaint lodged in November of the previous year by a composer identified as A. The complaint accuses G-Dragon and Yang Hyun-suk of breaching copyright law by allegedly reproducing and distributing a work without permission as part of an album.

YG Entertainment has refuted these claims. As reported by Ilgan Sports, a company representative clarified, "This issue arises from a 2009 solo concert where two songs with identical titles were inadvertently included in the setlist. It does not involve unauthorized album reproduction."

Reports indicate that the police have conducted interviews with individuals related to the case and executed two raids on YG Entertainment’s headquarters as part of the ongoing investigation.