The decline in YG Entertainment's stock price occurred amid reports that both singer G-Dragon and the company's executive producer, Yang Hyun-suk, are subject to a police investigation regarding alleged copyright infringement. This situation follows a six-day period of rising stock prices, influenced by strong second-quarter financial results.

At 9:22 a.m. on August 13, YG Entertainment's shares were valued at ₩97,200, reflecting a decrease of ₩4,900 (4.80%) from the previous session. The stock opened slightly lower at ₩102,000 and reached an intraday low of ₩97,100, representing a 4.89% decline.

This decrease contrasts with YG Entertainment's recent positive performance. On August 8, the company reported a return to profitability in the second quarter, with consolidated revenue of ₩100.4 billion and an operating profit of ₩8.4 billion. Net income was reported as ₩11.2 billion, marking a positive change from the previous year. On August 12, the stock achieved a 52-week high of ₩104,900.

According to information from police sources, an investigation was initiated by Seoul's Mapo Police Station following a complaint filed in November last year by a composer identified as A. The complaint alleged that G-Dragon and Yang Hyun-suk violated copyright law by reproducing and distributing one of his compositions without authorization as part of an album.

YG Entertainment has denied these allegations. In a statement quoted by Ilgan Sports, a company representative explained: "This issue originated from a 2009 solo concert where two songs with identical titles were mistakenly included in the setlist. It is not a case of unauthorized album reproduction."

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