@Dana i believe she isn't, even tho it is not clear. It seems like she's being held in some place by chang as he questions why he didn't kill her when he saw her and it is mentioned that he orders a room to be prepared for her but for hyungnim she is dead as it is what he has been told, he will probabbly get the reveal in later chapters
@Dana i remember him saying that he would take her from the brothel and either send her to live somewhere far away where an old woman should take care of her.