I'm sure that by now, everybody has read about characters like Jun and Kazuya due to make their appearances in Tekken 3. Well, Tiger has been playable for some time now and there haven't been any new surprises of any kind and many fans are beginning to doubt whether some of these disputed characters will ever appear. In addition, some people have pointed out that characters such Baek and Jun were killed by Toshin (Ogre) and therefore can't be in Tekken 3. Here's my theory on the matter: they're all inside of Ogre (Dragon Ball fans will now what I'm talking about; Ogre = Maijin Boo).
Let me explain. According to the stories Namco released, characters like Jun and Baek were defeated by Ogre yet there was no mention of their actually deaths. I think that what happened was that Ogre defeated them by absorbing them (like with Heihachi). This would explain why Ogre has the moves of characters such as Jun, Wang, Lee, Baek and Bruce. I think that Namco has designed the game so that these characters will somehow "escape" from Ogre after a certain amount of time has elapsed. In fact, I think that these characters will be released when certain characters finish the game (after a given amount of time). For instance, if Jin defeats Ogre 2, there might be a short movie of Jun emerging from Ogre (similarly, Ling could rescue Wang from Ogre, Hwoarang --> Baek, Bryan --> Bruce, Heihachi --> Kazuya or Lee). Since the story talks about several renowned fighters disappearing because of Ogre, this could also be a way of introducing the new characters we've heard about like Rage and Willy Williams.
This has been entirely theoretical.