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Two goals in the first quarter from South Korea's Seul Ki Cheon (12th minute) and Yurim Lee (14th) sealed the win for the hosts at the Jinchun National Athletic Centre.
India, however, did not give up without a fight a pulled a goal back through Lalremsiami in the 16th minute.
Despite the loss, India continue to lead the series 2-1 following victories in the first two games.
Earlier in the day, India looked to continue their winning momentum and were quick off the blocks to put some pressure on South Korea's midfield.
However, the South Koreans matched their rivals equally as the opening 10 minutes of the first quarter witnessed tough tussle between both the teams for supremacy.
But it was South Korea who took the lead when Seul Ki Cheon converted a penalty corner in the 12th minute.
If that was not enough, the Indian defense was beaten once again two minutes later when Yurim Lee scored from another penalty corner.
Trailing by two goals, India took the field in the second quarter looking to make a comeback and were instantly rewarded when foward Lalremsiami found the back of the net in the 16th minute to pull one back for the visitors.
The Indian team then took control of the match and looked threatening but the South Korean defenders stuck to their task as the visitors wasted a number of chances.
In the third quarter South Korea had the better chances of scoring as they earned three penalty Corners but failed to convert a single one with Rajani Etimarpu standing tall in front of the Indian goal.
It was important for India to create significant goal-scoring chances in the final quarter if they were to find the equaliser and expectedly the visitors kept piling up the pressure on South Korea and in the process earned two penalty corners in the last four minutes of the match.
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