As the clock struck 9:22 a.m. on the 13th, the financial markets witnessed YG Entertainment’s stock being traded at ₩97,200. This marked a stark decrease of ₩4,900, translating to a 4.80% downturn from the previous trading session. Initially, the stock opened at a slightly decreased value of ₩102,000, before dipping further to an intraday nadir of ₩97,100, culminating in a 4.89% decline.
Such a downturn starkly contrasts the company’s recent financial triumphs. Just days prior, on August 8, YG Entertainment had unveiled a triumphant return to profitability for the second quarter. The company reported a consolidated revenue of ₩100.4 billion and an operating profit amounting to ₩8.4 billion. Net income also saw a turn towards positivity, coming in at ₩11.2 billion on a year-on-year basis. On August 12, the company had even achieved a 52-week stock price peak of ₩104,900.
The catalyst for this market shake-up stems from allegations brought forth by a composer, identified as A, who filed a complaint with Seoul’s Mapo Police Station in November of the previous year. The composer claims that G-Dragon and Yang Hyun-suk infringed upon his copyright by reproducing one of his works without permission and subsequently distributing it as part of an album. This accusation has prompted the police to delve deeply into the details of the case.
In response to the allegations, YG Entertainment has firmly denied any wrongdoing. In a statement reported by Ilgan Sports, a representative from the company clarified, “This issue arises from a 2009 solo concert incident, where two songs sharing the same title were mistakenly listed in the setlist. It does not involve unauthorized album reproduction.”
The police investigation has seen significant developments, including interviews with key individuals associated with the case. Additionally, authorities have executed two raids on YG Entertainment’s headquarters as part of their effort to uncover the truth behind the allegations. The unfolding of this case continues to be a point of interest and concern within the industry.
Police have reportedly conducted interviews with related parties and carried outtwo raids on YG Entertainment’s headquartersas part of the investigation.