The company's stock fell following news that G-Dragon and executive producer Yang Hyun-suk are under police investigation for possible copyright violations. This decline follows a six-day rise driven by strong second-quarter earnings.

At 9:22 a.m. on the 13th, YG Entertainment's stock was at ₩97,200, down ₩4,900 (4.80%) from the previous day. The stock opened at ₩102,000 and fell to a low of ₩97,100, a 4.89% decrease.

This decline contrasts with the company's recent success. On August 8, YG announced a return to profitability in Q2 with ₩100.4 billion in revenue and ₩8.4 billion in operating profit. Net income was ₩11.2 billion, turning positive year-on-year. The stock reached a 52-week high of ₩104,900 on August 12.

According to police, Seoul’s Mapo Police Station started an investigation after composer A filed a complaint in November, alleging G-Dragon and Yang Hyun-suk illegally reproduced and distributed his work.

YG Entertainment denied these claims. An official told Ilgan Sports that the issue arose from a 2009 concert where two similarly titled songs were mistakenly listed, not unauthorized album reproduction.

Police have interviewed involved parties and conducted two raids on YG Entertainment's headquarters during the investigation.