However, K' is not the one to be impressed by such toys. At the limit of his capabilities, K' unleashes the remaining force he has to blow several soldiers away, making his glove collapse. Now unable to stop his hand from flaming, he is aided by Maxima in escaping the collapsed base. There is still much to do for K', at the beginning of a new millenium...and a new life.

During a whole year, K' and his friend Maxima have been running away from two parties: first, the Ikari Warriors, who have been hunting them as fugitive criminals, and second, the NESTS cartel, who wishes to exact punishment for the traitors. K' has been on the run ever since, and managed to get away fighting from several precarious situations. K' thinks he should enter the next King of Fighters tournament, in the year 2000, in order to clean up his image, and eliminate his persecutors at the same time. However, he can't blow his cover by teaming up with Benimaru and Shingo again, so the situation gets even more complicated. It is then when K' is met by an enigmatic woman called Vanessa, who is accompanied by a jolly Mexican wrestler called Ramon. She offers to team up with them. K' doesn't trust Vanessa at all, but if you want to beat the lions, you might as well go in the den with them....

And so, K' gets another chance of proving his own worth, aside from the fact that he was just as Kyo clone. However, during the last few nights, K' has been having some weird nightmares: in each nightmare, a little girl shouts out for him in a lonely background. She claims to be her sister, but K' remembers nothing about her. What could all this mean? This further fuels K's rage to burn every poor commoner that cruised his way. This earns K' and his partners to once again return to Southtown for the final encounter. K' feels a lot of deja vu once he enters Southtown, and feels deeply connected to it. K' and his teammates walk through the docks in order to arrive at the factory zone, where they are supposed to fight their final match. It is then when K' senses a cold wind in the air...something that makes him feel full of fear. K' bids Maxima and the others to hurry on to the factory zone, and that he will stop the threat here. Maxima tries to talk K' out of it, but K' activates the flames in his hand. Maxima understands, and leads Vanessa and Ramon out.

K' shouts for the intruder to show himself. Oddly enough, an innocent young woman with long, blue hair, and a similiar outfit to K's, appears in front of K'. She claims to be the "anti-K'", and proceeds to attack K' with identical attacks to his own! K' has a hard time fending off the girl's ice attacks, as he tries to counter with his own fire attacks. Each attack counters the other, and the battle begins to wear out both of them. K' wonders who this girl really is, but by wandering off in his own thoughts, K' is blasted by a full-fledged ice blast from the girl. The memory of the young girl calling out for K' flashes in his mind again. Could this girl really be his sister? Desperate to know the truth, K' invokes a wave of fury, and creates an inmense raging fire aura around him. He gathers them to blast the young woman with a final flaming attack. K' drops to his knees, spent and exhausted.

To his surprise, the young woman is still standing! Burned badly, but with a kind smile on her face. The girl introduces herself as Kula, and she has been sent here to stop Zero, a NESTS agent that has become power-drunk, and intends to destroy his superiors with the help of the Zero Cannon. K' doesn't understand anything, but he gets animated when Kula tells him to go look for his sister, since she is looking for him. With new enthusiasm, K' rushes to aid his friends in the abandoned factory.

When K' arrives, he notices how Zero has already dealt with most of his partners, and even former partners. Zero notices K', and bluffs about how K' is in such a bad shape. K' realizes this will be a tough match, but is futher simplified by the fact Lin has poisoned him previously, and Maxima and the rest had already worn him out. With this in mind, K' calls upon the remaining ounces of strength, and fires Zero to oblivion. This unleashes the fury of Zero, who now intends to fry K' and the other fighters with the Zero Cannon. K' is dumbfounded, since he is too weak to attempt anything else. Nothing to worry about, though, as NESTS itself takes care of Zero via two female agents. With a bad feeling about all this, K' leads his friends to safety before the Zero Cannon destroys Southtown completely.

On their way out, K' finds out that Ramon and Vanessa were lost, but there was no time to stay around and think. Suddenly, a familiar figure appears in front of him. Is that the girl in his dreams? She seems older...but once she calls out K's name, there is no doubt: it is K's sister, and it turns out to be Whip, a member of the Ikari Warriors, K's persecutors! K', along with Maxima, escape from the devastated Southtown amidst a beautiful meteor shower. A beautiful show to eclipse the disaster. K's decides to willingly discard his protective glove. Maxima warns him, but by taking a glimpse at Whip, he promptly tears it off. To everyone's surprise, K's flaming power does not go out of control! He has finally learned how to control the legendary crimson flames of the Kusanagi. With a smile on his face, K' burns in anticipation of his final match with his former bosses...the NESTS.

Throughout his trips to several NESTS bases located around the world, accompanied by his sister Whip and by Maxima, K' finds something very suspicious in his findings: the bases they have tried to raid for such a long time are now deserted. Why is it that no one was there? K' suspects that someone is tracking their steps. During another ambush to yet another abandoned NESTS building, K' and the others stumble upon Lin, who has also been on the track of NESTS in search of the the traitor to his clan, Ron. Whip suggests taking him in to enter the next King of Fighters tournament, where NESTS will finally reveal themselves to the world. K' couldn't care less about Lin, but he was rather curious of what NESTS planned to do with trying to go public after destroying a whole city.

K', who still wears his special red glove out of sheer tradition (he no longer conceives himself without it), once again makes a smashing appearance in the King of Fighters tournament along the people whom he really cares about (except Lin). This is finally the chance K' has been waiting for all these years: the chance to exact revenge on NESTS. He didn't care who got in his way, everyone should fall! K's burning desire for victory allowed him to gather a strong spirit, and be able to classify to the finals, which would take place atop a blimp. K' noticed that something was terribly wrong the moment he boarded the blimp, and was proven right when a familiar figure appeared to challenge on the ship's bridge: the original Zero had came to defy them to a fight to the very end!
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