The news of an ongoing police inquiry into G-Dragon and the company's leading producer, Yang Hyun-suk, concerning alleged copyright violations, has led to a decline in YG Entertainment's stock price. This situation unfolded after a continuous six-day increase in the company's stock, which had been buoyed by impressive second-quarter financial results.

By 9:22 a.m. on the 13th, shares of YG Entertainment were trading at ₩97,200, reflecting a drop of ₩4,900 or 4.80% from the prior session. The stock opened at a slightly lower ₩102,000 and fell to an intraday low of ₩97,100, indicating a 4.89% dip.

This decline contrasts sharply with the company’s recent financial success. On August 8, YG Entertainment reported a return to profitability for Q2, with consolidated revenue of ₩100.4 billion and an operating profit of ₩8.4 billion. Additionally, the company’s 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.

Police sources have indicated that an investigation was initiated by Seoul’s Mapo Police Station following a complaint filed last November by a composer identified as A. The composer accused G-Dragon and Yang Hyun-suk of violating copyright law by unlawfully reproducing and distributing his work as part of an album.

In response to these allegations, YG Entertainment has refuted the claims. According to a statement reported by Ilgan Sports, a representative of the company stated, "This issue originated from a 2009 solo concert where two songs with identical titles were mistakenly included in the setlist. It does not involve illegal album reproduction."

The police have reportedly interviewed involved parties and conducted two raids on YG Entertainment's headquarters to further the investigation.