Episode 3 of The Art of begins with Da-hye narrating to Jae-hyeon how she met Sarah, alias Mok Ga-hui, in 2018 at a family sale for employees of Samwol Department Store. Ga-hui had worked there five years ago. In a flashback, we see Sarah being rude and cutting in line. A fight ensues when Da-hye accidentally clicks her photo, leaving her with only a photo of Sarah's leg, revealing her tattoo.

As for Mu-gyeong, the sewer leads him to the trash chute of Samwol Department Store, owned by Chairman Choi. Mu-gyeong questions her but she refuses to share anything. She had a contract to bring Boudoir to her store but canceled it and fired the employee who advocated it. This means she knew Sarah was a con artist.
A cop remembers Mok Ga-hui's name from his old precinct, where she was often wanted for cyber crimes. As @Cheongdam Goddess, she would put second-hand luxury items on sale and disappear after the wire transfer. She made off with 500 million won and then committed suicide five years ago to escape loan sharks. The reservoir footage where she jumped shows her holding a silver purse. The old precinct didn't recover her body, but they didn't care as she left a suicide note.
Mu-gyeong steals the suicide note and warns Jae-hyeon that the cops, prosecution, and the court will be furious if he reveals their incompetence. But Jae-hyeon isn't scared, and they read the letter together. Through it, we learn of Sarah, alias Mok Ga-hui's story.
Ga-hui starts as a salesgirl and is treated inhumanely. Someone robs the store on her shift, and she ends up owing them 50 million won. She starts smoking as it's the only way to get a break. She gets a scar from an unruly client and tattoos on it. Things start looking up when her senior pays her to stand in line and buy an item from the upcoming family sale.
At the family sale, seeing the huge discounts, she grabs everything she can and puts everything on sale as Cheongdam Goddess. She pretends to be a rich influencer, which garners several buyers. Soon, she starts stealing employee IDs and taking out loans to buy whatever she can from these family sales and selling them at market price. After paying off her debt, she gets greedy. But Samwol Department finds out and puts a limit on how much one can purchase at family sales.
The loan sharks start harassing her, and at one point, she falls in the trash chute while hiding from them. She is demoted to stock duty and accidentally damages a bag. Upset, she drinks and smokes inside, stealing a luxurious silver purse. The sprinkler from the smoke alarm ruins the products. After writing her suicide letter, she withdraws the 500 million won she scammed from her buyers.
The police officers uncover key phrases in her suicide note that align with the bag collection she had stolen. @Cheongdam Goddess's maiden post about Boudoir dates back to December 26, 2018, a day after Mok Ga-hui's tragic suicide. This was also the day Yeo-jin first encountered Sarah. Mu-yeong suspects that Boudoir might have originated from the name Lady Dior, the bag that Ga-hui had stolen. However, his superior isn't inclined to reopen a case based solely on assumptions.
Determined not to give up, Mu-gyeong retraces Ga-hui's steps and discovers a couple's polaroid photo taken by her boyfriend, Ji-hwon, near the reservoir. He was a male escort that Chairman Choi had fallen for and subsequently made his personal assistant.
Jae-hyeon, unaware of this new development, is upset and refuses to listen to their superior. He personally heads to the reservoir in search of clues. But Mu-gyeong is already one step ahead as he has filed a complaint about piranhas and is having the reservoir drained. He hopes to find Sarah's silver purse, but instead, they uncover a human skull at the bottom of the reservoir.