jong-goo was a weak man being tempted...
... that's my theory.
he keeps having bad dreams about the red-eyes ghost, which makes him believe the japanese man is the cause of the deaths. that's the bait the monk was talking about. the japanese man is actually a devil, tempting weak men and trying to take them under sin so he can take their souls. jong-goo took the bait, and what we see in the movie is the consequence of his weakness (being suspicious and afraid of the japanese man, at the point of going after him and killing his dog)
i believe the woman spirit is a spiritual force of goodness, trying to prevent him of going too deep into his sins to the point where there is no return. obviously her attempt didn't work, as jong-goo is just a human being, a sinner like all of us
pretty good movie
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