- The film follows Yu Rim, a Korean expatriate in the United Kingdom working as a journalist, who is ordered by the Democratic Peoples Republic of Korea to proceed to Seoul and gather intelligence on the United States Forces Korea.
- The plot of Unsung Heroes is partially based on actual historical events, but many names and details were changed.
The film opens with an unidentified spy master giving instructions to protagonist Yu Rim, a Korean expatriate in the United Kingdom working as a journalist, who is ordered to proceed to Seoul and gather intelligence on the United States Forces Korea. Initially, he only has three contacts in Seoul: Park Mu, the chief press officer for the Republic of Korea Army, Janet O'Neill, the wife of senior American intelligence official Dr. Kelton, and Lee Hong-sik, his handler, through whom Yu also runs into his old lover Kim Soon-hee, who is apparently employed by the United States Counter Intelligence Corps, and is introduced to Colonel Klaus. Yu begins gathering intelligence on a coup plot by rightist South Korean general Sin Jae-sin.
Lee helps him pass back this information to North Korea using his unwitting friend Kim Su-gyong as a courier. Lee is suspected by a US counter intelligence agent Martin who found Lee takes care of homeless kids. Soon after, Lee is killed in a shootout with CIC agents, including Kim Soon-hee, leaving Yu unable to pass his crucial intelligence back to his government. Yu calls Lee from a bar, but after realizing the person on the other end of the line is not Lee, hangs up immediately. A waitress in that bar is subsequently arrested and tortured by Colonel Klaus, who learns that a man suspected to be Yu was seen making the phone call.
Yu flees to a Hong Kong safe house run by a North Korean singer. He is instructed to return to Seoul and contact an agent code-named White Horse. However, he is suspicious of White Horse and sets a trap for him which reveals that he is working with Colonel Klaus. White Horse is then killed by an unknown person. Yu obtained the information from Janet O'Neill that John Foster Dulles is visiting Europe to get reinforcements.
Yu meets Lewis, an American army lieutenant, and converts him to Communism to relay this information; Lewis stages his own kidnapping so that he can disappear to the North for training, and later returns to Seoul. Two months later, Yu receives a coded message on Voice of Korea instructing him to contact an agent named Diamond, who turns out to be his old lover Kim Soon-hee, ostensibly working for the Americans, but really a double agent for North Korean intelligence.
With Dulles's agenda exposed to the media, the US plans a battle to demonstrate their superiority, but Yu obtains this information from Park Mu. The Americans fail to get more reinforcements from their European allies and are defeated by a well prepared North Korean army.
Yu continues to gather intelligence on General Sin's coup attempt, this time passing messages back to Pyongyang by way of a radio operator disguised as a disabled veteran who begs outside hotels. Yu hides messages in cigarette filters, which he then throws on the ground near the beggar. However, he is unaware that he is being followed by the CIC, who are filming his activities. Colonel Klaus hears about a North Korean spy disguised as a veteran, and begins reviewing video tapes to check on Yu's activities.
Kim saves the day by cutting the scenes out of the tapes to avoid further suspicion falling on Yu, but the disappearance of the scenes triggers Klaus' suspicion towards Kim herself. Klaus stages a test of loyalty for her, in which she is kidnapped and threatened with execution by American agents in Hokkaido, Japan pretending to be Communists; however, Kim correctly senses this is a trap, and escapes by killing the agents.
Park Mu realizes that Yu and Kim are spies. Klaus discovers that Yu was the one who leaked out intelligence. Park is pushed by Klaus, and kills Kim who tries to protect Yu. Later, Yu kills Park for revenge.
At the end, the North Korean army starts new attacks, and forces the allies to negotiate for peace. Due to Yu's efforts, Sin Jae-sin's coup is stopped by South Korean president Syngman Rhee's agents. Sin and Klaus commit suicide and Yu leaves Korea.
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