The match went into shootout after both the teams were tied 1-1 at the end of regulation period.
Malaysia has now won the bronze medal in all four editions of the Asian Champions Trophy.
Malaysian goalkeeper Kumar Subramaniam allowed only one of the four Korean shootout attempts to go into the goal, while all three attempts by the home team were successful.
Firhan Ashari, Faizal Saari and Nabir Noor scored for Malaysia. The other two shots were not required as the issue was already settled.
In regulation period, Malaysia took the lead in the 14th minute through a field goal by Shahril Saabah, but only for South Korea to equalise three minutes later through captain Jung Man-Jae's penalty corner conversion.
Malaysia had lost yesterday's semifinal to Pakistan 2-3 in the penalty shootout after a 1-1 draw in regulation period.
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