Earlier, Korea beat the Philippines 2-0 to enter the final for the first time in five attempts
Japan’s bid for a hat-trick of Women’s Asian Cup titles came crumbling down after the defending champion was knocked out by China 4-3 on penalties in the second semifinal.
After being tied 1-1 at the end of regulation time and 2-2 in extra time, Japan missed two chances in the penalty shootout to crash out.
Riko Ueki starred for Japan with a brace while Wu Chengshu and Wang Shan Shan scored for eventual finalist.
China, which has not won this title since 2006, will face Korea in the final on February 6 in a bid to clinch a record-extending ninth crown.
Earlier, Korea beat the Philippines 2-0 to enter the final for the first time in five attempts.
Korea drew first blood with Jo So-hyun scoring with a strong header off a corner in the fourth minute.
The lead was doubled in the 33rd minute when Son Hwa-yeon converted a cross from Cho Jyu-hoo from the left, sliding the ball into the goal from the near post for her eighth international strike.
Korea would have added a few more to that scoreline, especially in the second half, but for an inspired Olivia McDaniel in goal. She pulled off several saves, especially in the last 20 minutes.
Her sister, Chandler McDaniel, who has been crucial in attack en route to the semifinals, started on the bench after picking up a niggle in the quarterfinal against Chinese Taipei.
Coming on as a second-half substitute, she was unable to make an impact, lasting for just eight minutes before being brought down twice and helped off the pitch.
The Filipinos were left playing much of the game in their own half, chasing after the Koreans.
A few attempts went over the crossbar while a few others couldn’t get past a clinical Korean backline that was barely tested in this game.
The physical exhaustion of their 120-minute quarterfinal win over Chinese Taipei was evident as the Filipinos ran out of steam.
The result (semifinals):
Korea 2 (Jo So-hyun 4, Son Hwa-yeon 33) bt Philippines 0
China 2 (Chengshu 46, Wang 119) bt Japan 2 (Ueki 26, 103) 4-3 on penalties.