It was a dark and rainy night in the city of Second Southtown. A city who once again is known for its' life of chaotic fighting and criminal activities going on left and right, just like its old predecessor who eventually paid the price in a way history won't forget so easily. The first Southtown was indeed a city known for its' life of chaotic fighting and criminal activities. Citizens of Second Southtown still discuss to this day the reasons on why and whose fault it was. Some point their fingers at crime lord Geese Howard, a figure who's still not forgotten to this day. Some point to the now-destroyed Scrolls of Immortality, since those scrolls were the reason all hell broke loose in a Southtown after "The Legendary Wolf" Terry Bogard defeated Geese Howard in the top of his tower and restored the peace and order Southtown once was. But most people point their fingers at the NESTS cartel, who settled its headquarters in Southtown around 1999.

It took him a few months, but Kain brought back the panic, chaos and fighting life back from the ashes and turned Second Southtown into his own little playground, where according to him, only the strongest would be able to survive. Being the twisted and evil man he is, Kain decided to declare Second Southtown's independence as its own country. Then, it hit him…he knew that even though he did bring the fighting back to Southtown, there was still something missing, something that would complete this "visionary" goals and he realized there was only one way he could do it…by bringing the King of Fighters tournament back to its roots, bringing that same honor-bound code and the blood that made the tournament such a big deal. To make it even more appealing, Kain decided to throw in the biggest catch yet…if the winner could beat him in a match, that person would become the new country's ruler. Soon, he demanded that the new tournament was announced in all parts of the world; so that the world's best fighters could gather around Second Southtown and to fight it out until all the weak and miserable perish.

A week after. "Handle it accordingly.." Kain was seated on his chair attending a phone call, the door opened as his receptionist entered. "You have my permission.." Kain added as he hanged up, his long pale blonde glinted with the rays of the sun, his white coat, everything, southtown was a free for all, and it was time for the second phase of his plan.