While taking out the class's trash before school, Gray has Coke poured on his head by Teddy Jin, who threatens him not to get confident for beating Colton Choi.
Phillip Kim's backstory is given via flashbacks and narration. While he was never a strong fighter, Phillip rose to the top of Imdo Middle School by using his family's wealth to buy influence, and deliberately targeted (and brutalized) weaker students to cement his reputation. For anyone he couldn't buyout or outfight, he pulled strings and used his connections to take them out from the shadows.
It is revealed that the day before, Phillip recruited Teddy and his friend Chad Jang, both of whom were notorious at Seong-Il Middle School, to take out Gray, still upset with Gray's refusal to apologize or acknowledge him. After school, he invited Teddy and Chad to the Bar, using his wealth and poise to convince them of his legitimacy.
While Teddy recognizes Phillip stands little chance against Ben, he and Chad are both seduced by the promise of becoming part of his group. The next day, while drinking a bottle of Coca-Cola, Teddy notices Gray walking below and takes the opportunity to pour his drink on his head.