YG Entertainment Stock Impacted by Copyright Investigation Involving G-Dragon

Shares of YG Entertainment experienced a 4.80% decline following an investigation into alleged copyright violations by singer G-Dragon. Executive producer Yang Hyun-suk is also part of the police inquiry.

The stock price of YG Entertainment decreased after reports emerged that G-Dragon and executive producer Yang Hyun-suk are under investigation by the police for potential copyright infringement. This development occurred after the company had achieved a six-day increase in stock value, attributed to strong second-quarter financial results.

At 9:22 a.m. on the 13th, YG Entertainment's stock was trading at ₩97,200, a decrease of ₩4,900 (4.80%) from the previous day's close. The stock opened slightly lower at ₩102,000 and reached an intraday low of ₩97,100, reflecting a 4.89% fall.

This stock movement contrasts with the company's recent positive performance. On August 8, YG Entertainment announced a return to profitability for the second quarter, with consolidated revenue of ₩100.4 billion and an operating profit of ₩8.4 billion. Net income reached ₩11.2 billion, marking a year-on-year improvement. The stock had reached a 52-week high of ₩104,900 on August 12.

According to police sources, the Mapo Police Station in Seoul initiated an investigation after receiving a complaint in November last year from composer A. The complaint alleged that G-Dragon and Yang Hyun-suk violated copyright law by reproducing and distributing one of A's works without authorization as part of an album.




YG Entertainment has refuted the claims. In a statement reported by Ilgan Sports, a company representative explained, "This issue arises from a 2009 solo concert where two songs with the same title were mistakenly included in the setlist. It does not involve unauthorized album reproduction."

The police have reportedly conducted interviews with individuals involved and have executed two raids on YG Entertainment's headquarters as part of their investigation.