Iran and South Korea drew 24-24 in their concluding match at the Shaikh Saad Al-Abdullah Sports Hall Complex in Kuwait City, which was enough for the Koreans to advance via tie-breaker rules as both teams had three points apiece on the table.
On Saturday, Team Melli will meet the UAE in the fifth-place match.
Japan is scheduled to meet South Korea on Saturday, while Qatar play Bahrain in another semis.
The top four teams have qualified for the World Men’s Handball Championship.