The decline in YG Entertainment’s stock is attributed to the ongoing police investigations of both singer G-Dragon and the company’s executive producer, Yang Hyun-suk, concerning alleged copyright infringements. This situation unfolded after the company had enjoyed a six-day streak of rising stock prices, buoyed by impressive second-quarter financial results.

By 9:22 a.m. on the 13th, YG Entertainment shares were valued at ₩97,200, showing a reduction of ₩4,900 (equivalent to 4.80%) from the day before. Initially opening at a slightly lower price of ₩102,000, the stock further declined to reach an intraday low of ₩97,100, reflecting a 4.89% drop.

The recent stock decrease stands in stark contrast to YG Entertainment’s earlier robust performance. On August 8, the company disclosed a return to profitability in the second quarter, reporting ₩100.4 billion in consolidated revenue along with an operating profit of ₩8.4 billion. The net income also turned positive year-on-year, reaching ₩11.2 billion. The stock had previously achieved a 52-week high of ₩104,900 on August 12.

According to sources within the police, the Mapo Police Station in Seoul initiated an investigation after receiving a complaint in November of the previous year. The complaint, filed by a composer identified as A, accused G-Dragon and Yang Hyun-suk of copyright infringement by allegedly reproducing and distributing one of his works without permission as part of an album.

In response to the allegations, YG Entertainment has refuted the claims. As reported by Ilgan Sports, a representative from the company stated, “This issue arises from a 2009 solo concert where two songs with identical titles were mistakenly included in the setlist. It is not a matter of unauthorized album reproduction.”

Reports indicate that the police have conducted interviews with individuals involved and have executed two searches at YG Entertainment’s headquarters as part of their investigation.