The Danes, who beat Sweden 21-18 in their first game on Saturday, failed to cope with their Asian opponents' speed after the restart and their fast breaks helped open up a five-point lead with five minutes remaining.
Denmark tried in vain to get back into it and closed the deficit to one goal in the final 10 seconds, but that was not enough and Republic of Korea held on to top the group with four points and spark mass scenes of celebration.
Jo Hyobi was their top-scorer with five goals, while Denmark's Pernille Larsen was the most prolific player with seven as the morning session was brought to a close.
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