The investigation into renowned artist G-Dragon and YG Entertainment's key figure, Yang Hyun-suk, over potential copyright breaches has resulted in a fall in the company's stock value. This development interrupts a positive trend where the company had been benefiting from robust second-quarter earnings, leading to a six-day consecutive rise in stock prices.

By 9:22 a.m. on the 13th, YG Entertainment's shares were valued at ₩97,200, a reduction of ₩4,900 or 4.80% from the previous trading session. The stock began the day slightly lower at ₩102,000 and reached a daily minimum of ₩97,100, reflecting a total decrease of 4.89%.

This decline contrasts with YG Entertainment's recent successful performance. On August 8, the company announced its return to profitability for the second quarter, reporting ₩100.4 billion in consolidated revenue and an operating profit of ₩8.4 billion. The net income was recorded at ₩11.2 billion, indicating a positive turnaround compared to the previous year. By August 12, the stock had achieved a 52-week peak at ₩104,900.

According to information from police sources, the investigation was initiated by Seoul’s Mapo Police Station following a complaint filed in November the previous year by a composer referred to as A. This individual accused G-Dragon and Yang Hyun-suk of infringing on copyright laws by reproducing and distributing his work without permission as part of an album.

YG Entertainment has refuted these claims. In a statement reported by Ilgan Sports, a representative clarified, “The issue arose from a 2009 solo concert where two identically titled songs were mistakenly included in the setlist. It is not a matter of unauthorized album reproduction.”

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