The decline in YG Entertainment's stock price was prompted by reports that the artist G-Dragon and the company's executive producer, Yang Hyun-suk, are subjects of a police probe related to potential copyright breaches. This development follows a period of six consecutive days of stock gains, which were fueled by the company's robust second-quarter financial results.

At 9:22 a.m. on the 13th, YG Entertainment's shares were trading at ₩97,200, reflecting a decrease of ₩4,900 or 4.80% from the previous day's session. Initially opening at a slightly lower ₩102,000, the stock further declined, reaching an intraday low of ₩97,100, which represents a 4.89% drop.

This fall in stock price contrasts with YG Entertainment's recent positive financial performance. On August 8, the company reported a return to profitability for the second quarter, achieving consolidated revenue of ₩100.4 billion and an operating profit of ₩8.4 billion. Additionally, net income turned positive to ₩11.2 billion compared to the previous year. By August 12, the stock had hit a 52-week high of ₩104,900.

According to information from police sources, Seoul's Mapo Police Station initiated an investigation after receiving a complaint in November of the previous year. The complaint came from composer A, who claimed that G-Dragon and Yang Hyun-suk breached copyright law by illegally reproducing and distributing one of his works as part of an album.

YG Entertainment has refuted these allegations. As reported by Ilgan Sports, an official from the company explained, "This issue originates from a 2009 solo concert, where two songs sharing the same title were accidentally listed in the setlist. It does not involve unauthorized album reproduction."

Reports suggest that the police have conducted interviews with individuals involved and executed two raids on YG Entertainment's headquarters as part of their ongoing investigation.