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Indeed, Yurei had such an enormous phantasmal presence that she had developed something similar to Frank's Death Charm, but more passive, and it even worked with Yokai.
Yokai were a normal thing in Japan, the smaller and weaker ones were usually not capable of harming people, but they sometimes would grow stronger the more they absorbed negative emotions, so the underworld people had to thin them down from time to time.
However, they were like flies, no matter how many you slain and exterminate in mass, they're never gone, new ones would slowly pop up at the end, one by one and they would wander around aimlessly, sometimes hiding from people, other times latching on people and slowly absorbing their residual emotional energies.
Check "The Protagnist's Sister Is Actually the Strongest"!