The second episode of Villains commences with a nostalgic flashback, where a young boy pedals a bicycle, carrying a girl along for the ride. As the girl inquires about his future aspirations, he candidly reveals his desire to become a con artist—someone who can create an illusory world of deceit, where the lines between truth and fiction blur, all while amassing a substantial fortune.
The narrative returns to the scene of J's demise in Seoul, where Gi-tae, now relegated to the underworld's crackdown team, receives a phone call from Han Yong-san, the current head of the NIS's financial crime division. A tip about counterfeit currency piques their interest, prompting Gi-tae to delve deeper.
Simultaneously, Jung-hyuk, now the head of the violent crime unit at the Seoul Metropolitan Police Agency, arrives at the crime scene and swiftly identifies the deceased individual. A subsequent expert investigation reveals that the bills in question are 'supernotes,' high-precision counterfeits produced using an intaglio printing machine. Furthermore, there's a resurgence of $100 counterfeits, echoing the 2016 money laundering case in Seoul, which Jung-hyuk was previously the lead investigator for. Hotel surveillance footage catches J using the fake 500,000 won notes.
In present times, Jung-hyuk operates an underground gambling den that includes an illegal boxing ring, overseen by his right-hand man, Tak Jung-gi. There's also a hidden basement where he manufactures drugs, employing a methamphetamine expert, Dr. Choi, to oversee production. Gi-tae updates Ma Jung-chul, the NIS Director, and Yong-san, the team leader, on his findings. He explains that the term 'Supernote' was coined by the US Government in 1989 after fake banknotes indistinguishable from the real ones were discovered in Manila, Philippines. He links J's re-emergence to the 500,000 counterfeit bills and the homicide in Seoul. Jung-chul orders Gi-tae and Yong-san to collaborate on the case.
As Gi-tae engages with a colleague involved in a drug crackdown operation, it emerges that the deceased individual was Choi Do-sik, the leader of a drug gang they were investigating.
Jung-hyuk's concoction made waves, and Do-sik aspired to be its distributor but found himself short on funds. Through a fixer, Do-sik was introduced to J, who proposed investing 50 million won in the drug through Do-sik. The day Do-sik met his fate became the team's D-Day, when they plotted to ambush both Do-sik and J as they signed the partnership agreement. However, at the last minute, the meeting point was shifted to Incheon Port terminal, where Su-hyun's home stood five years ago. The mission ended in tragedy, with Do-sik's life cut short and his body later discovered. Gi-tae believes J's hideout remains unchanged from five years ago and requests Yong-san to lead the team for a surprise attack. Meanwhile, Su-hyun receives a call, urging her to go to a specific location.
As Gi-tae's team and Su-hyun pass each other on their way out, when they arrive at the house, it's empty. Gi-tae is frustrated, realizing they've just missed their target. Later, Su-hyun shows up at the police station after narrowly escaping death when a container narrowly missed her car. She claims to have reconnected with J and made a fake 500,000 won bill. She seeks protection, arguing that J wants her dead because she knows too much. In exchange for police protection, she agrees to confess.
At the end of the episode, J and his team, including the fixer and Kkangsuni, kidnap a man. They prepare him for a procedure as J announces the start of the supernote game.
