The morning of the 13th saw YG Entertainment's shares trading at ₩97,200 by 9:22 a.m., reflecting a decrease of ₩4,900, or 4.80%, from the prior trading session. The day began with a modest opening at ₩102,000, but soon witnessed the stock sinking to an intraday low of ₩97,100. This marked a 4.89% decline, a stark contrast to the company’s recent bullish performance.

This setback in the stock market appears paradoxical when juxtaposed with YG Entertainment's recent financial triumphs. On August 8, the company announced a remarkable comeback to profitability in the second quarter, reporting consolidated revenue of ₩100.4 billion alongside an operating profit of ₩8.4 billion. Additionally, net income reached a positive ₩11.2 billion, showcasing a year-on-year improvement. Just days prior, on August 12, the stock soared to a 52-week peak of ₩104,900.

The origin of this controversy traces back to a complaint lodged with Seoul's Mapo Police Station in November of the previous year. The complainant, identified as composer A, accused G-Dragon and Yang Hyun-suk of unlawfully replicating and distributing one of his compositions as part of an album without necessary permissions, thereby breaching copyright laws.

In response to these serious allegations, YG Entertainment has firmly denied any wrongdoing. A spokesperson for the company, speaking to Ilgan Sports, clarified the situation, explaining that the confusion arose from a 2009 solo concert, during which two songs sharing the same title were mistakenly included in the setlist. The spokesperson emphasized that this incident does not constitute unauthorized album reproduction.

As part of the ongoing investigation, police have conducted interviews with individuals connected to the case and executed two raids at YG Entertainment’s headquarters, as they work to piece together the facts surrounding the allegations.

Police have reportedly conducted interviews with related parties and carried outtwo raids on YG Entertainment’s headquartersas part of the investigation.