The market's reaction was swift following reports that both G-Dragon and Yang Hyun-suk were under investigation by authorities regarding alleged breaches of copyright law. Prior to this, YG Entertainment had enjoyed a prosperous upward trajectory, bolstered by robust financial performance in the second quarter.

At precisely 9:22 a.m. on the 13th, YG Entertainment's stock was observed trading at ₩97,200, reflecting a notable reduction of ₩4,900, equivalent to a 4.80% fall from its previous value. Initially opening at a somewhat diminished ₩102,000, the stock further plummeted to an intraday low of ₩97,100, translating to a decrease of 4.89%.

This downturn starkly contrasts with the company's recent financial successes. Earlier, on August 8, YG had proudly reported a return to profitability for the second quarter, with consolidated revenues reaching ₩100.4 billion and an operating profit of ₩8.4 billion. Moreover, net income surged to ₩11.2 billion, marking a positive change compared to the previous year. Impressively, on August 12, the company's stock had soared to a 52-week high of ₩104,900.

Police investigations were set in motion after a complaint lodged last November by a composer identified as A. This complaint accused G-Dragon and Yang Hyun-suk of illicitly reproducing one of A's musical compositions without proper authorization and subsequently distributing it as an album track, thus infringing on copyright rights.

In response, YG Entertainment has firmly rejected the allegations. According to a statement reported by Ilgan Sports, a representative from the company clarified, "The issue stems from a 2009 solo concert, where two songs sharing the same title were mistakenly included in the setlist. It does not involve unauthorized reproduction for an album."

The police investigation has intensified, with authorities reportedly conducting interviews with relevant individuals and executing two raids on YG Entertainment's headquarters as part of their thorough inquiry into the claims.