The decline in YG Entertainment's market value stems from reports concerning police inquiries into both G-Dragon and executive producer Yang Hyun-suk related to alleged copyright infringements. This development interrupted a positive trend where the company had been experiencing gains over six consecutive days, buoyed by robust second-quarter financial results.

As recorded at 9:22 a.m. on the 13th, the trading value for YG Entertainment stood at ₩97,200, reflecting a decrease of ₩4,900 or 4.80% from the previous day. The stock commenced trading slightly lower at ₩102,000 and reached an intraday minimum of ₩97,100, culminating in a 4.89% downturn.

This negative performance contrasts with YG Entertainment's recently reported financial successes. On August 8, the company disclosed a return to profitability in the second quarter, with consolidated revenues reaching ₩100.4 billion and an operating profit of ₩8.4 billion. Additionally, net income rose to ₩11.2 billion, marking a positive shift from the previous year. Just days earlier, on August 12, the company's stock achieved a 52-week peak at ₩104,900.

Police sources revealed that the Mapo Police Station in Seoul initiated an investigation following a complaint submitted in November of the prior year. The complainant, identified as composer A, accused G-Dragon and Yang Hyun-suk of illegal reproduction and distribution of his work without consent, which was allegedly included in an album release.

YG Entertainment has responded to these accusations with a firm denial. As reported by Ilgan Sports, an official from the company stated, "The issue arose from a 2009 solo concert where two songs with identical titles were mistakenly included in the setlist. It does not pertain to unauthorized album reproduction."

Law enforcement officials have reportedly engaged with relevant individuals for interviews and executed two raids on YG Entertainment's headquarters as a part of their ongoing investigation.