Going into the final, the hosts were the overwhelming favourites but the pressure of playing in front of the home crowd seemed to get the better of them.
They failed to get it going against a young Indian team, who came out all guns blazing to give country their second yellow metal in the Incheon Games.
The South Korean trio of Yonghee Choi, Lihong Min and Youngho Yang trailed India from the first end by one point which grew to two by the second end.
The Koreans failed to erase the two points deficit as the third and fourth ends yielded similar number of scores (58-58).
The Indians had 12 10's while the Koreans scored 13.
The bronze went to Iran, who beat Philippines 227-224.
With the gold, India have jumped four places in the medals standings to 11th with 19 medals (two gold, two silver and 19 bronze).
Earlier in the day, the Indian women's team of Trisha Deb, Purvasha Sudhir Shende and Jyothi Surekha won bronze medal in the compound event.
Compound archery, a non-Olympic medal event, is making its debut at the Asian Games.
India's Verma will also vie for gold in the individual event while Trisha will compete in the semi-final later in the day.