Sajad Mashayekhi led Iran with 19 points, while Guna Ra collected 23 points for South Korea.
Team Melli will play the winners of Japan and Saudi Arabia on Friday for fifth place.
With more than 12,000 competitors from 45 nations and territories, the Asian Games has more participants than the Olympics.
Iran has sent 289 male and female athletes to the Games in 34 sports events.
MNA/TT