As I explained that there are four types of indirect quotations which are two Statements, a Question, a Suggestion, and a command. Today, you will learn the second statement which is 라고. 라고 is for 이다 verb.  For instance, he said that he is a doctor/그는 (그가) 의사라고 했어요/gu nun (gu ga) eui sa la go haec eo yo. She said that she is from New York/ 그녀는 (그녀가) 뉴욕 출신이라고 했어요/gu neo nun new york chul shin e la go haec eo yo. The first example from “그는 의사이다/he is a doctor” and second example from “그녀는 뉴욕 출신이다/she is from New York.  Can you see there are 이다 verb? There isn’t the same word I can say 이다 in English, but it has little common meaning with ‘Is’.  Let’s study more examples below.

That is Steven’s car. 저것이 스티븐의 차이다

She said that is Steven’s car. 그녀는 저것이 스티븐의 차라고 했어요.

The bag is yellow color. 그 가방은 노란색이다.

He said that the bag is yellow color. 그는 그 가방이 노란색이라고 했어요.

That building is a church.  그 빌딩은 교회이다.

She said that that building is a church.  그녀는 그 빌딩이 교회라고 했어요.

Is it clearer to see how you can change it?  As I mentioned, indirect quotation is very important for Korean skill.  Watch the same video from 2:00 minutes for about 30 seconds.