With the help of his materialistic concubine, Yang murders those in his way and spreads a rumour that Dam-ryeong is unfit to rule as he is bewitched by a wicked mermaid, allowing him to capture Se-hwa as the village falls into panic. Dam-ryeong arrives too late to save Se-hwa, who has been tortured by Yang and his concubine to extract her tears, which turn into rare sea pearls. Dam-ryeong, who has been experiencing dreams of himself, Se-hwa, and their foes in the future, fears that the same ill-fate that afflicts himself and Se-hwa will replay itself. To warn his future self, he commissions a soon-to-be artifact that will be discovered by conservation-scientists in the future - a time capsule containing a portrait of himself with a message to his future self that “everything is repeating itself” and he has to protect the reincarnation of Se-hwa from danger, particularly due to the reincarnations of Yang and anyone related to him. A furious Dam-ryeong is determined to kill Yang and expose all his crimes, until he is exiled and removed from his position by the court due to the rumours. While Dam-ryeong is being escorted on a boat for his exile, Yang and his associates renew search for Se-hwa. Urged by his suspicions, Dam-ryeong requests the boat to turn around and a fight ensues with Yang and his gang, with Se-hwa being attacked under water. As all the men aim their harpoons, Dam-ryeong plunges into the water just as a harpoon, hurled by Yang's son, impales him from behind, saving Se-hwa. As Dam-ryeong dies in her arms, Se-hwa thrusts the harpoon deeper through his body and stabs herself. The boats sink, carrying Dam-ryeong's belongings with them, and Dam-ryeong's jadeite bracelet, which he gifted Se-hwa earlier, slides off from Se-hwa's hand as she dies and is lost to the ocean. Yang and his concubine are both executed, for their crimes, by sword and monkshood poison, respectively, after the officials who survived from the fight clear Dam-ryeong of the false accusations. In modern day, young Heo Joon-jae runs away from home after the divorce of his parents and his father obtaining the rights to raise him.