The King's palace finds out that Cheongju Castle has fallen. Prince Milpoong and the rebels convince the people of the provinces that he will bring about a new world. Moon Soo and his men volunteer to fight in the battle to guard the capital. The King orders his soldiers to go to the battle and feels guilty for not fighting with them.

The King tries to persuade the Chairman to share the palace positions with the Namin in order to weaken the rebels' motivation. The palace doesn't have enough troops so they have to decide where to place them. Hearing that the rebels are coming for the capital, high government officials are the first to flee. The royal troops decide to ambush the rebels.

The rebels are ambushed by the government troops and are defeated. Prince Milpoong and Lee Yin Jwa however manage to get away. The Chairman agrees with the King to share government positions with the suppressed Namins and this conciliates the Namins associated with the rebels. The government troops return in triumph and the King congratulates them.