The central, devastating twist of "Oldboy" is that Mi-do, the young sushi chef Oh Dae-su falls in love with after his release, is his own biological daughter. This was not a coincidence but the very core of Lee Woo-jin's elaborate revenge. In high school, Dae-su witnessed Woo-jin in an incestuous embrace with his sister and spread a rumor about it. The rumor led to the sister's suicide, and Woo-jin has spent his entire life plotting his revenge.
Woo-jin's plan was not simply to imprison Dae-su, but to make him suffer the same sin. He had Dae-su's daughter adopted, raised her, and then used post-hypnotic suggestion on both Dae-su and Mi-do to ensure they would meet and fall in love upon his release. Every step of Dae-su's quest for "freedom" was manipulated by Woo-jin. The clues, the encounters, and the romance were all part of a grand, cruel design.
After revealing the truth, Woo-jin, his life's purpose fulfilled, commits suicide in front of Dae-su. Utterly broken, Dae-su cuts off his own tongue as an act of penance for his past gossip—the "sin of the tongue" that started everything. He then seeks out the hypnotist who aided Woo-jin and begs her to erase the knowledge that Mi-do is his daughter. The film ends with Dae-su and Mi-do embracing in the snow. His face breaks into a pained smile, leaving it ambiguous whether the hypnosis worked, and whether he is living in ignorant bliss or feigning it to protect the daughter he now knowingly continues a relationship with.