Song Ah and Joon Young finally realize they have mutual feelings for one another, and they have a few blissful moments together. Meanwhile, Hyeon Ho finds out about Joon Young and Song Ah's relationship and gets angry. The stress caused by his broken friendship and the seemingly perpetual cycle of preparing for competitions starts to wear on Joon Young.
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Mi Young attends the final prenatal class alone—until Gun unexpectedly shows up. Gun breaks up with Se Ra, and Se Ra asks Mi Young to break up with Gun. Overwhelmed, Mi Young tells Daniel, who is leaving for France, that she wants to go with him.
Waking up in the hospital, Gun shows symptoms suggesting a hereditary illness and doesn't remember Mi Young. Though confused and hurt, she stays by his side. Se Ra seizes the chance to be with Gun as much as possible, but as she realizes how strong Gun and Mi Young's bond still is, she feels threatened.
News about Gun and Mi Young spreads publicly, and Gun is oddly pleased. While rummaging through the house after his plan goes awry, Yong's mom discovers a suspicious set of divorce papers. Learning the marriage is a contract, Se Ra goes to see Gun again, while Mi Young ends up meeting Daniel when Gun doesn't show up to their appointment.
Mi Young develops genuine feelings for Gun, and Gun in turn starts to fall for Mi Young's new side. Se Ra asks Mi Young point-blank if she loves Gun, leaving her rattled, while Daniel feels sorry that Mi Young keeps getting the short end of the stick. Gun revises the divorce agreement he drafted with Mi Young.
Gun shows Mi Young around his office, but Se Ra's unexpected arrival flusters him. He tries to tell Se Ra about his marriage, but Mi Young stops him.
Gun grows uneasy about Daniel's presence, and Mi Young tries to keep her distance from Gun. Mi Ja arrives in Seoul with Mr. Choi and goes out with Mi Young upon hearing Gun sold the Yeo-ul Island factory, she's furious. Meanwhile, Gun suggests that he and Mi Young start sharing a room.
Outside the prenatal class, Gun and Mi Young run into one of Se Ra's friends, while Se Ra decides to return to Korea after her New York performance. Hearing that an industrial-waste plant is slated for Yeo-ul Island, Mi Young feels betrayed by Gun, and her sudden change in attitude starts to irk him.
Lee Gun, the 22nd heir of the Jeonju Lee clan and ninth-generation only son, is a young CEO soaring at Jangin Chemicals. But his biggest worry: every male ancestor has died before turning 30. As relatives pressure him to marry and produce an heir, he prepares a ring to propose to his long-time girlfriend, Se Ra. Meanwhile, Kim Mi Young, a temp office assistant at a law firm, drops by a candy shop on an errand and runs into Gun by chance—how will their first meeting unfold?
Hyung Joon promises Ji Young that he will always be by her side.
Ji Young, while preparing for Miss Universe, falls into contemplation as she sees other candidates pursuing their dreams. Ji Young takes sweet revenge on Manager Park, who visits her regarding a Dream Department Store advertisement model issue, thinking back on past times. Hwa Jung, learning that Teacher Jung has put her house up for sale to raise investment for new cosmetics, wavers over the issue of studying abroad.
Hyung Joon, realizing that Ji Young's birthday could become an issue, tries to find a way to protect her as much as possible. Hyung Joon tries to develop and sell a new lip gloss under the name 'V Cosmetics', but this too is not easy due to Kang Shik's interference.
Ji Young hands the prize money to Hyung Joon, but he tries not to accept it. Hyung Joon's heart is both happy and complicated as he looks at Ji Young, who suggests they date secretly... Meanwhile, Ji Young prepares for the 'Miss Universe' competition. Hyung Joon asks Director Ma to take care of Ji Young, and Ji Young prepares for the international competition with Director Ma's support.
The winner of the 1997 Miss Korea 'Jin' is finally announced. Ji Young, learning that ViVi Cosmetics is on the verge of bankruptcy, is heartbroken to realize that Hyung Joon was not at the main competition because of the company.
Jae Hee goes into hiding after hearing her father Kim Suk Chul's proposal. Director Ma visits Kim Suk Chul and asks him to return Jae Hee, but instead faces a tax investigation. As the main competition begins, Oh Ji Young gradually starts to gain attention. However, due to Yoon's scheme, ViVi Cosmetics begins to face overdue promissory notes.
Oh Ji Young, having failed to place, cannot hide her disappointment, and Hyung Joon feels sorry for her. Director Yang, having learned all the facts, proposes to Ji Young that she leave Hyung Joon and join him to compete in the main competition after Im Sun Joo steps down.
After much struggle, Ji Young competes in the Miss Korea Seoul preliminaries and does her best, but feels overwhelmed by the offensives from Queen Beauty Salon and Seri Beauty Salon. Ji Young and the ViVi Cosmetics members go through a tense preliminary judging process. Meanwhile, Ji Young's family, realizing she went ahead with the Miss Korea pageant, appears at the preliminary venue and tries to forcibly take Ji Young away.
Ji Young, along with the ViVi Cosmetics members including Hyung Joon, begins serious 'Miss Korea' training. Meanwhile, Director Ma and Director Yang are surprised by the news that the Miss Korea pageant might not be held due to the IMF crisis.
Ji Young's family opposes her participation in 'Miss Korea'. Director Ma calmly begins to persuade the family. However, when the topic of 'breast augmentation surgery' comes up, the family and Hyung Joon strongly oppose it even more. Teacher Jung secretly takes samples of ViVi Cream to Kim Kang Shik of BaDa Cosmetics to negotiate.
Ji Young leaves the 'Mandarin Lady Pageant' venue holding Director Ma's hand, and Teacher Jung tries to stop Director Ma. However, Director Ma firmly takes Ji Young and leaves the venue. Ji Young quits her department store job and begins training with Jae Hee and Director Ma's other candidates.
Yoon offers Ji Young to be her 'sponsor', and Ji Young leaves in indignation and a sense of betrayal towards Hyung Joon. Teacher Jung tries to get money from Hyung Joon's mother but is flustered by her formidable demeanor. After many twists and turns, Ji Young steps onto the stage for the 'Mandarin Lady Pageant'.
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