YG Entertainment fell five percent to at 34,250 won ($30.4) as of 10:01 a.m. (0101 GMT) Thursday. The tax investigation came at the height of a police investigation into a sex scandal involving Seungri, who was expelled from his group BIGBANG and YG Entertainment.
Seungri and his business partner, Yoo In-seok, who launched an entertainment and restaurant company, were accused of using dance and music clubs to arrange sexual services for business favors.