It is the year 1609, the first year in the reign of Gwanghaegun (Prince Gwanghae), a time characterized by political tensions and frequent occurrences of bizarre and mysterious phenomena that cannot be explained. Hyung-do, a government official and investigator, is asked to look into reports of an enormous UFO sighted in the eastern province of Gangwon-do.

In this episode we are officially introduced to the mysterious 'pipe-smoking man' whilst the quest for the truth behind the UFO sighting continues.

Anyone coming into contact with a recently discovered cache of gold bars (dating from the Shilla Dynasty) comes down with a skin-ravaging, rapidly fatal condition.

Villagers attribute a rash of violent deaths which leave behind mutilated human remains to that of tigers. However, all of the victims are criminals, already marked for execution.

A storyteller holds court, weaving a tale of a woman’s murder that occurs on a dark, densely foggy night. Elsewhere, a man scribbles on a pad, clearly in a fugue state. He is a 'mudang', or psychic; a condition inherited from his mother. The tales he relays to the storyteller are remarkably identical in every detail to a recent spate of murders, therefore he is clearly the murderer.