The central twist of Forgotten is that the protagonist, Jin-seok, is not a 21-year-old living in 1997, but a 41-year-old man in 2017 suffering from dissociative amnesia. His 'family' are actors hired by the man pretending to be his brother, Yoo-seok. This man is actually Choi Seung-uk, the son of a family murdered in 1997, and the entire setup is a psychological play to make Jin-seok remember and confess to the crime.
Through flashbacks, the full tragedy is revealed. In 1997, Jin-seok's parents were killed in a car accident that left his real brother, Yoo-seok, critically injured. Driven by desperation due to the Asian Financial Crisis, Jin-seok accepted an online offer to kill a woman for money to pay for his brother's surgery. The offer came from the woman's own husband, a doctor, who wanted the insurance money. During the act, Jin-seok panicked and also accidentally killed the daughter but spared the young son (Choi Seung-uk). When confronting the doctor, a struggle ensued, and the doctor fell to his death. The trauma of these events caused Jin-seok to lose his memory of the past 20 years.
In the present day, after his memory is violently restored, Jin-seok is consumed by guilt. In a final confrontation, Choi Seung-uk asks if his father was behind the hit. To spare him that final, painful truth, Jin-seok lies and takes full responsibility. He then kills himself with poison. Having fulfilled his life's purpose and seeing no future, a weary Choi Seung-uk also commits suicide by jumping from the hospital window, ending the tragic cycle.