The Haunted Palace Episode 12 begins on a somber note, with Gangcheori grieving his brother Bibi. Yeo-ri, blaming herself for his death, offers comfort, only for both of them to be arrested for trespassing by Kim Bong-in. Their release is secured when the King defends them, but Gangcheori remains emotionally hollow. Yeo-ri steps up and informs the King that Kim is behind the sinister events, though the King—staggered by the news—decides to trail Kim first before acting.

Kim soon reprimands Pung-san for letting the fugitives go, but Pung-san seems more focused on the 8-foot ghost that’s now stronger thanks to Bibi’s pearl. Meanwhile, Yeo-ri enlists Ga-seop to guard the Queen and Crown Prince while the team sets off for Yongdam Village to find answers from Choi Won-u. Despite the journey ahead, concern for Gangcheori remains, with even Head Eunuch Kim and Mrs. Yoon attempting to cheer him up with sweets and affection. Gangcheori quietly promises to eat, visibly moved by their kindness.

In a powerful scene of royal reckoning, the Queen Mother confesses her past mistakes. She reveals how Kim manipulated her into involving Pung-san, ultimately causing the King’s unborn child harm. This emotional tide continues as Royal Guard Seo confirms Kim’s connection to Se-wan, finally validating Yeo-ri’s claims. The King summons Kim, recalling how the minister once gifted him his predecessor’s tonggae—an act that had been mistaken for loyalty.

But Kim drops his mask. He scorns the King’s progressive reforms, mocking him for disrupting the “natural order.” As Kim gloats about the lack of evidence and threatens Yeo-ri, the King reveals that he’s been secretly broadcasting Kim’s confession to the court. Kim is swiftly exiled for treason, but his followers break him out.

In a shocking turn, Kim begs the ghost to kill the King, only to be betrayed. The ghost, now empowered, possesses Pung-san and murders Kim. Gangcheori, finding closure, reassures Yeo-ri he blames the ghost—not her. Together, they press forward to Yongdam under the guise of a royal retreat.

Episode 12 is a turning point that blends political intrigue, emotional vulnerability, and ghostly vengeance. Kim Bong-in’s confession scene is particularly powerful—it marks the dramatic collapse of a long-standing political facade, revealing how deep-rooted power resists change. What’s especially impressive is how the episode contrasts this high-stakes betrayal with intimate, human moments—like Gangcheori quietly accepting yugwa candy or the eunuch opening up about shared grief. These quiet scenes give the series emotional gravity, grounding its supernatural elements in genuine character arcs. The King’s emotional journey from trust to betrayal to decisive leadership is another highlight, showing that compassion doesn’t equal weakness.

As the group settles into Yongdam, the mystery intensifies. The King learns that no monarch has visited the village in over a century, not since King Yeon-jong. Their host Choi Won-u grows defensive when questioned about his ancestor, Choi Gil-sang. The ghost’s next possession of In-seon brings more disruption, leading Choi to pin the haunting on a book merchant, Jang Eon-su, whom he claims to have accidentally killed years ago.

Yeo-ri and Gangcheori manage to exorcise the ghost, who surprisingly agrees to be captured—on the condition that a scandalous book about the Chois is exposed. This Anthology of Light and Darkness, tied to royal secrets and forbidden history, becomes the episode’s MacGuffin. A flashback reveals that Choi had indeed sold this collection to Jang. When Jang hid the book and demanded more money, Choi killed him in a fit of rage. That very book, now in danger of being destroyed, is saved at the last second by Gangcheori.

At the climax, Gangcheori presents the book to the King, revealing its connection to the ghost’s origin. Meanwhile, the ghost reacts furiously to the King’s words and expels Yoon Gap’s soul. Pung-san finds the whole ordeal amusing—leaving us on a chilling yet oddly satisfying note. For more about The Haunted Palace, do check out the link below.

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