The stock price of YG Entertainment experienced a downturn following revelations that G-Dragon and Yang Hyun-suk are being investigated by law enforcement agencies for potential breaches of copyright laws. This development interrupted a positive trend in the company's stock performance, which had been bolstered by robust second-quarter financial results over the previous six trading days.

At 9:22 a.m. on the 13th, shares of YG Entertainment were priced at ₩97,200, marking a decrease of ₩4,900 or 4.80% from the previous trading session. The stock opened at ₩102,000 but fell to an intraday low of ₩97,100, representing a 4.89% reduction.

This decline contrasts sharply with the company's recent financial success. On August 8, YG reported a return to profitability in the second quarter, with consolidated revenues of ₩100.4 billion and an operating profit of ₩8.4 billion. The net income was ₩11.2 billion, marking a positive shift from the previous year. On August 12, the stock reached a 52-week peak of ₩104,900.

The Mapo Police Station in Seoul initiated an investigation following a complaint filed in November by an individual identified as Composer A. The complaint alleges that G-Dragon and Yang Hyun-suk unlawfully reproduced and distributed a musical work without permission as part of an album.

YG Entertainment has rejected these allegations. A statement provided to Ilgan Sports by a company representative clarified that the issue arose from a 2009 solo concert where two songs with identical titles were mistakenly included in the setlist, and it is not a matter of unauthorized album reproduction.

In pursuit of the investigation, police have reportedly conducted interviews with involved parties and executed two raids on YG Entertainment’s headquarters.