In Okinawa, Miyagi and Daniel are greeted by Chozen Toguchi, who takes them to meet Sato and reveals that he is Sato's nephew. Sato demands to fight Miyagi, who adamantly refuses. Arriving at Tomi Village, Miyagi and Daniel are welcomed by Yukie and her niece Kumiko. They discover that Sato has become a rich industrialist whose supertrawlers have destroyed the local fish population, impoverishing the villagers. They are forced to rent property as sharecroppers from Sato, who owns the village's land title. Yukie reveals that she never married Sato because of her love for Miyagi. After Miyagi's father dies, Sato gives him three days to mourn out of respect before their fight. Miyagi shows Daniel the secret to his family's karate — a handheld drum that illustrates the "drum technique", a block-and-defense karate move that Daniel begins to practice. Miyagi grieves for his father with Daniel consoling him and telling him about his own father's death.