The public disclosure of an investigation concerning G-Dragon, along with YG Entertainment's executive producer Yang Hyun-suk, has resulted in a depreciation of the company's stock. This downturn follows a prior six-day period of gains driven by robust second-quarter financial performance.

On the morning of the 13th at 9:22 a.m., YG Entertainment's shares were valued at ₩97,200, which represents a decrease of ₩4,900, or 4.80%, compared to the previous day. The stock opened at a slightly reduced price of ₩102,000 and fell to a daily low of ₩97,100, indicating a total decline of 4.89%.

This downturn is notable against the backdrop of YG Entertainment's recent positive financial trajectory. On August 8, the company reported a return to profitability in the second quarter, with consolidated revenue reaching ₩100.4 billion and operating profit amounting to ₩8.4 billion. The net income stood at ₩11.2 billion, reflecting a favorable year-over-year turnaround. The stock achieved a 52-week peak of ₩104,900 on August 12.

The investigation was initiated by Seoul’s Mapo Police Station following a complaint filed in November of the previous year by a composer referred to as A. The composer claims that G-Dragon and Yang Hyun-suk infringed copyright laws by reproducing and distributing one of his musical works without proper authorization.

In response to these allegations, YG Entertainment has refuted the claims. An official statement to Ilgan Sports clarified that the issue originated from a solo concert in 2009, where two similarly titled songs were mistakenly included in the setlist, asserting that it does not pertain to unauthorized album reproduction.

The police have reportedly conducted interviews with involved individuals and executed two raids at YG Entertainment’s main office as part of their ongoing investigation.