Episode 2 of "Phantom Lawyer" commences with I-rang experiencing a profound embarrassment in court. He exits in an ambulance, accompanied by his brother-in-law, Bong-soo. Once they are away from the courtroom, he halts the ambulance and, in a fit of anger, hails a taxi to his office. He has called the priest and decided to rid himself of Gang-pung's interference by burning the talisman that had been keeping him at bay.
Meanwhile, Gang-pung is at his house, watching over Ji-woo. Yang Do-Gyeong, the lead lawyer at Taebaek Law Firm, has orchestrated a full-blown internet campaign to criticize Gang-pung's character due to his past as a gangster. Ji-woo reads the news at home and suffers severe stomach cramps, eventually fainting.
Gang-pung is distraught, especially when he starts to fade away as the priest burns the talisman. Before the priest can complete the procedure, Gang-pung possesses I-rang again and stops him by picking him up by the throat from the floor.
Suddenly, I-rang's mother storms in after discovering his office location from Min-ju. She tries to stop I-rang, but Gang-pung's reaction makes it clear that the person is not her son. Gang-pung rushes out of the office towards his home to help Ji-woo. He jumps into the water to force himself out of the body and begs I-rang to save Ji-woo. I-rang uses the code he provided to enter the house and carry Ji-woo out.
The taxi they initially used has already driven off, but fortunately, they run into Nan-hyun, who helps take her to the hospital. The visit reveals that Na-hyun is afraid of hospitals due to something from her past, so she does not follow I-rang. However, Min-ju shows up and tells I-rang about Gang-pung's past. They met when her church visited a prison for Christmas, and Gang-pung helped her decorate the Christmas tree. She knew about his past but did not think it would come up in court since Gang-pung had already confessed, turned himself in, and served his time in prison.
Later, at his family's restaurant, I-rang discovers that his mother is already aware of the money he took to establish the office. However, she isn't angry about it; instead, she makes him sign an agreement that she owns half of the company because she invested the initial capital of 30 million. She also hands over the truck used for transporting meat as the company vehicle.
Following this, I-rang tracks down the nurse, Oh Jin-Suk. He learns that she was paid a substantial sum of money by Jeong-Seok to keep her silence. He tries to persuade her to testify, but she declines. I-rang attempts to show her that testifying is the best way to protect her child.
In a flashback, young I-rang experiences insults and humiliation from his classmates when his father's corruption is revealed. He tells her that her son will suffer when he learns that his life of privilege was earned through a crime that not only led to Gang-Pung's death but also put his daughter in the hospital. She still declines but tells him to find the EMR record, which can reveal Gang-Pung's heart rate during the operation.
At the same time, Na-Hyun learns about the EMR records and confronts Jeong-Seok. She loses her cool since Jeong-Seok hid crucial information that could cost them the case, but Do-Gyeong dismisses her. It turns out that Do-Gyeong is the one who advised Jeong-Seok to pay the nurse and tamper with the EMR records.
Do-Gyeong then calls Cho Gi-Cheol, a gang leader and owner of Saenara used appliances. He had used him to get rid of the computer with the evidence. Gi-Cheol assures him that he's done as instructed, when in fact he kept the hard drive as a bargaining chip.
At the same time, Na-Hyun discovers Saenara after her own digging and tricking her friend, prosecutor Kim Hyeon-u. She heads to the company's location just as I-rang picks up Bong-Soo to help snoop around the same place.
I-rang and Bong-Soo arrive first. He uses a meat hook to break into the warehouse. Gang-Pung alerts him too late about Gi-Cheol being a drug dealer. The alarm goes off when he breaks the lock, and gang members suddenly flock to their location.
They locked themselves within the warehouse, and I-rang attempted to deter the gang from entering through the window, while Bong-soo searched for the computer. He found it, but the hard drive was missing. Suddenly, everything went quiet. It turned out that Na-hyun had shown up, pretending to be from the prosecution office to search the warehouse. The distraction provided I-rang and Bong-soo with enough time to sneak out.
The situation became complicated when Na-hyun discovered drugs. Outside, Gang-pung informed I-rang about a hidden compartment under the seat of Gi-cheol's car, where he found the hard drive. He also found drugs and realized that Na-hyun might be in danger. He tried to save her, but they all ended up at Gi-cheol's mercy.
Gang-pung became agitated when Gi-cheol played the familiar song he usually did when he intended to get violent. He took over I-rang's body and swiftly attacked everyone. When he left the body, I-rang collapsed, and Na-hyun found the hard drive hidden in his coat. She intended to destroy it but chose not to.
Then, I-rang won the case, leading to the imprisonment of nurse Jin-suk and doctor Jeong-seok. Na-hyun lost a case for the first time and entered a journal entry about it in her diary.
I-rang visited Ji-woo, allowing Gang-pung to possess him to make her understand that his death was not her fault. Now that his case was solved, the priest burned a talisman to set him free.
At the end of the episode, I-rang tried to perform a ritual to keep ghosts out of his office, but a ghost who had just died after falling from the rooftop of a building still appeared.
