Episode 11 of "Phantom Lawyer" begins with Na-hyun and I-rang returning to the office after MS Cha's disappearance. Dong-sik's ghost is of no help as he claims to have no memory. Ms. Cha shows up and confesses that she dictated the will to Dong-sik, thereby forging it.
Regarding Seon-hwa, Ms. Cha clears up the misunderstanding that she did report her. It turns out that after seeing Dong-sik and Seon-hwa at the workshop that night, Young Ms. Cha Jeong-hui was so heartbroken that she got drunk. While at the bar, she rambled to a stranger about her frustrations with Seon-hwa, mentioning that she was from North Korea. Unbeknownst to her, the person she rambled to was a police officer, so the next day, Seon-hwa was arrested, and Jeong-hui blamed herself ever since.
After Seon-hwa's death, Jeong-hui was devastated, and Dong-sik stayed by her side, comforting her. In the process, they grew closer and eventually married, having Ji-hoon together. When they were married, Dong-sik loved and adored her, but she couldn't get over the thought that she had caused the death of the woman he loved. To make amends, she vowed to find Seon-hwa's son and give him her shares.
In a dramatic turn of events, Jeong-hui thinks that Seon-hwa might be alive. When she left the courtroom, she went to her grave intending to bury the shoes her husband had made with her but found a note thanking her. The location of her grave was only known to the three of them, and since Dong-sik was dead, the only possible explanation for the note is that Seon-hwa left it.
As I-rang catches a glimmer of hope to turn the case around, Na-hyun is furious that Jeong-hui's deceit has cost them the case. She no longer wishes to pursue it, informing I-rang that she'll speak with Do-gyeong about a settlement and accept whatever they offer to drop the lawsuit.
At Taebaek, Do-gyeong is celebrating his victory, but his joy is short-lived as Ji-hoon is angered that he kept the information about his mother reporting Seon-hwa from him. Ji-hoon no longer cares about the settlement and only wants to see his mother, so he leaves. Soon after, Na-hyun arrives. She demands 10% of Ideal's total assets as a settlement. Do-gyeong feels that she's no longer the rational lawyer she once was, blaming I-rang for it. He thinks they are too different and wants her to return to him at Taebaek.
Na-hyun responds that she knows I-rang and herself are different, which is why she likes being with him. Her statement stings Do-gyeong, and he wants to ask about her feelings when they worked together, but he changes the question to ask about her time at Taebaek. He refuses to settle, and Na-hyun leaves after informing him that they will find another way.
Na-hyun and I-rang's next course of action is to find Seon-hwa. Jeong-hui informs them that a public defender brought her the urn with Seon-hwa's ashes, so if she wasn't the one who died, they need to find out who did. Na-hyun suggests dropping the will lawsuit and filing a new one seeking a share of the company with Eun-seong as the plaintiff. Their chances will be in their favor if they find Seon-hwa and get her to testify.
Meanwhile, Min-hyuk informs Do-gyeong about the new case, and he orders him to find out where Seon-hwa was buried and get a DNA test. He suggests that it would be best if the paternity test shows no relationship, hinting that it would be in their favor if they could prove that Seon-hwa was not their mother.
Min-hyuk hesitates to confirm the results as it might suggest he's faking the paternity, but Do-gyeong's insistence forces him to obey. Meanwhile, Chairman Yang visits Kyung-hwa's restaurant and enquires about I-rang's father, asking if she knows of any case files or notes he left behind. I-rang gets a breakthrough when they locate the public defender handling Seon-hwa's case. They visit him at the hospital, where he is battling late-stage cancer, and he suggests they ask her fellow inmates about Seon-hwa. The lawyer gives them his notebooks, so I-rang brings in Bong-soo to help since he is skilled at locating people. He finds one of the inmates who informs them about a fire in the prison's laundry room. Seon-hwa and another inmate, Sun-yeong, were taken to the hospital with severe burns. Seon-hwa died, while Sun-yeong stayed for a few weeks and was released after finishing her time.
I-rang and Na-hyun think that Seon-hwa might have taken Sun-yeong's identity. This is soon confirmed by Dong-sik, who had stayed behind to spy. He saw the lady call a noodle shop, and they realized that Seon-hwa is the owner of the shop where Eun-seong goes for his meals. They rush to the shop, but Seon-hwa had already been warned and left in a hurry, missing them but soon catching up. I-rang feels that they should not be chasing after her as she has done her utmost to remain hidden for years, so there must be a reason. He does not want them to force her to testify, especially since Do-gyeong will do whatever it takes to win and use the fact that she has been using a fake identity against her.
Na-hyun offers to speak alone and not pursue the matter if she insists on staying hidden. Fortunately, Seon-hwa agrees to talk to Jeong-hui and clear the misunderstanding. It turns out that the police officer was already after her, so they knew she was a defector, and her son was planning to defect too. Whether Jeong-hui got drunk or not, they would have arrested her sooner or later. I-rang negotiates with Ji-hoon about the lawsuit, telling him words that his father used to say, which convinces him to drop the lawsuit.
Do-gyeong was ready with the paternity test to use in court, but Ji-hoon told him that he had investigated Eun-seong's leather factory and found out that their method of making leather is the same as the one they use in their company. It is a traditional family method, which proves that he is related to Seon-hwa. He chooses to believe Eun-seong's leather production over the paternity test and signs a contract with his company for leather supply.
Later, Seon-hwa and Jeong-hui visit Dong-sik's grave, where Jeong-hui learns that the shoes made by Dong-sik were hers all along. It turns out that Dong-sik fell in love with her at first sight, and Seon-hwa was helping him make her the perfect shoes, but she misunderstood. The ghost Dong-sik had not lost his memory. He remembered that he loved Jeong-hui and wanted her to know. Now that she knows at last, and he was ready to pass on, Tae-oh burns the talisman.
I-rang is heartbroken that Jeong-hui never knew how much Dong-sik loved her. He no longer wants to wait and is ready to confess his feelings to Na-hyun. At the end of the episode, before he could confess, he is suddenly possessed by a ghost and chases after a puppy.
