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.
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Do Hyun realizes that another personality exists within him and comes to understand that it's “multiple personality disorder.” Tae Im brings Do Hyun back to Korea to protect the family's control over the company. Meanwhile, Ri Jin searches for her missing patient, Heo Sook Hee, at Club Paradise, where she unexpectedly runs into Do Hyun — but he seems like a completely different person.
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.
As it is revealed that Im Sun Joo is an unmarried mother and her 'Jin' (Winner) qualification is revoked, Oh Ji Young learns that she can advance to the finals as 'Mi' (Third Place). The ViVi Cosmetics members and Teacher Jung are happy about this hard-won opportunity, but Yoon, seeing Hyung Joon and Ji Young growing closer, makes an offer to ViVi Cosmetics that is hard to refuse, leaving Hyung Joon in distress.
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.
With the Bunwon seized by Japanese forces, Jeongi attempts to slip away to meet Gwanghae but is captured by Gangcheon. After learning the full truth from Mun Saseung, Yukdo agonizes over his choice—then ultimately releases Jeongi. Trusting that Gwanghae will drive the invaders away, Jeongi returns to the Bunwon and waits for his promise to be fulfilled.
Tailing Hwa-ryeong's men from the merchant guild, Taedo discovers the kiln where Jeongi is being held. Seizing a brief opening as soldiers pass by, he rescues Jeongi and flees with her—only to be struck by a throwing blade. Face to face with Gangcheon, Jeongi unleashes her fury, declaring that she can never forgive him for being her father. Steeling her resolve, Jeongi immerses herself in the potter's wheel and presents the finished vessel to King Seonjo.
After hearing the full truth from Mapung, Jeongi breaks down in tears before Mun Saseung, who is left stunned and shaken. Jeongi then pleads with Gwanghae to delay Gangcheon's arrest just a little longer. Confronting Gangcheon herself, Jeongi is devastated once more when he coldly declares that Yukdo is the only bloodline he acknowledges. Claiming he wishes to atone, Gangcheon summons Jeongi to Euldam's grave.
To protect Jeongi, Gwanghae arranges for a personal guard to stay by her side. When pigments needed for overglaze painting run short, Mun Saseung turns to Hwa-ryeong for supplies—drawing Gangcheon straight to her. Thanks to Jeongi's foresight in testing Gangcheon's scheme in advance, Mun Saseung successfully completes the tribute porcelain. Enraged by his failure, Gangcheon orders Mapung to kill Jeongi.
Mun Saseung is appointed as the new nangcheong of the Bunwon, and Jeongi becomes the first female master potter in Joseon history. Seeing Jeongi clad in her official potter's robes, Gwanghae smiles with pride and gifts her the workshop once used by Euldam. Reduced to desperation, Gangcheon and Yukdo beg Mun Saseung to allow them to remain at the Bunwon. Elsewhere, at the request of a Japanese merchant, Hwa-ryeong summons Jeongi—hinting at new trials yet to come.
Jeongi confronts Gangcheon, demanding that he reveal the truth about Euldam, but his shameless willingness to offer a false confession only fuels her anger. Gwanghae vows before King Seonjo to uncover not only the truth behind the current 사건 but also the events of the previous nangcheong competition. A royal order is issued for Yukdo's execution, and a grief-stricken Gangcheon kneels before the palace gates in penitence.
Despite Taedo's warnings that it is dangerous, Jeongi insists she must remain at the Bunwon to bring Gangcheon down from his nangcheong post. Reunited with Jeongi at the workshop, Gwanghae cannot hide his quiet delight. Meanwhile, Yukdo grows uneasy when he is forced to compete with Jeongi to create the lid for King Seonjo's cherished jar. He promises Jeongi that if she succeeds, he will elevate her to the rank of master potter.
King Seonjo orders Gwanghae, Imhae, and Shinseong to find a way to end the people's widespread stomach illness, prompting Gwanghae to disguise himself and investigate in secret. While surveying the village, he unexpectedly encounters Jeongi, who is making and distributing bowls to the villagers. Jeongi carefully presents a vessel she crafted especially for Gwanghae. Soon, a royal decree is issued for the Bunwon to produce pottery for the common people, and Gwanghae sets out to find Jeongi.
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