When we last left off, the Grim Reaper had just told the Goblin that he believed Sunny was a reincarnated version of his sister. The Goblin is anxious to go see Sunny right away and the Grim Reaper accompanies him, but Sunny is understandably weirded out by his enthusiasm. The Grim Reaper explains that the Goblin believes he's his sister reincarnated and she then is even more weirded out and asks them to leave. The Goblin continues to visit Sunny and bring her gifts of things that she loved in her previous life. Duk Hwa lets Eun Tak know what's going on and also tells her about the fact that Grim Reapers can see people's past lives when they touch their hands.
Sunny comes to visit the Goblin at their house to learn more, but is still skeptical even after he tells her the in-depth story of what her previous life was like. Eun Tak has finally reached graduation day. As all the other student's parents show up to congratulate them, Eun Tak sits there alone. We see someone enter for her and expect it to be the Goblin, but it's actually Red Granny/the god who has been watching over her(with her modern, young face) with a bouquet for Eun Tak. She hugs her and wishes her congratulations. Eun Tak realizes that it's the granny that watched over her when she was a girl. After Red Granny god leaves, the Goblin shows up to wish her congratulations as well.
Sunny and the Grim Reaper are still broken up, but he spies on her in her chicken shop. She comes into the room just as he's put his hat on making him disappear. You think she didn't see him, but then she re-emerges into the room with a branch and knocks his hat right off of his head-allowing her to see him again. She is shocked, but not as surprised as you'd expect. She knew something was off and this explains a lot. He admits to her that he is a grim reaper.
Death nearly comes for Eun Tak as she confronts one of her ghost friend's cheating husbands who also had killed her. Realizing that she's alone with him in an outside stairwell and it seems like he's about to push her to her death just like he did his wife, she calls the Goblin who saves her in the nick of time.
Later, as Eun Tak is hanging out with the other ghosts an unexpected and most disturbing visitor shows up in the form of the ghost of Park Joong Won-the king's evil adviser from the Goryeo period. He looks like a mess and his fingers, lips, and tongue are all purple. There's no mistaking his menace and even though Eun Tak doesn't know what's going on right away, she knows he's evil.
Episode 12 resumes with the ghost of Park Joong Won showing up. Eun Tak shakes it up and goes about her business at home. She has a question to ask the Grim Reaper and finds him hanging out with the Goblin. As she mentions a text that Duk Hwa translated for her, the Goblin and Grim Reaper realize that there are things about Duk Hwa's knowledge lately that just don't add up. They put together all of the knowledge of things that he had without ever being told and realize...he's God (or posessed by God in reality). They go to find him and he acknowledges it right away. He scolds them on their questioning of him and whether he's listening/challenging them and points out that he's given them outs and that it was the Grim Reaper himself who chose to erase his memories.
The red granny comes across Duk Hwa on the street an acknowledges he's back to being wholly himself. She tells him that he's a kind soul who brightens the earth and to not forget that. While The Grim Reaper and the Goblin are having a conversation at home, the Goblin suddenly gets a vision of the reaper with the king's face and has to shake it from his head.
While helping Duk Hwa look at potential new applicants to the company, the Goblin comes across the reincarnation of a soldier that was incredibly loyal to him in his past life. He make sure that he not only gets the job, but that the company provides him with a nice living quarters for him and his family as well as a new car.
Joong Won comes to pester Eun Tak again. This time he introduces himself to her and figure she already knows who he is. He reveals that it was the Goblin who killed him and that the king, Wang Yeo, has been by the Goblin's side this whole time...as the grim reaper, confirming what we've suspected all along. Eun Tak is shocked and even when the Grim Reaper reveals to her that he suspects that he either was Wang Yeo or Joong Won in his past life, she doesn't tell him.
The Grim Reaper goes to find Sunny. He wants her to remember her past and remember Kim Shin as her brother, so he kisses her-stating that a Grim Reaper's kiss brings back your memories of your past life. Sure enough she remembers her past with Kim Shin as her brother and the Grim Reaper as her husband who back then was the King-Wang Yeo. She goes and finds the Goblin and tells him that she now remembers and calls him big brother. He is overjoyed, but forgets to ask how she got her memories back. Only Eun Tak thinks to bring it up. During the same conversation she tells him that Joong Won came to visit her.
The Goblin seeks out Joong Won and finds him. He tries to kill him, but is not able to and then Joong Won reveals to him that the reaper is Wang Yeo. The Goblin is angry and immediately goes to find the reaper. The reaper has also come to realization that he is Wang Yeo as found the temple where the Goblin would pray for both Sun and Yeo every year. The two meet up there as the Goblin puts his hands are the reapers neck and that's where the episode ends.