It is the first time since 1938 that Germany have been eliminated from the competition at the very first stage.
Joachim Loew’s men failed to break down a resilient Korean side, who still had slender hopes of making the knockout stages themselves on the final day of Group F fixtures.
Then Kim Young-gwon popped up in stoppage time to prod home from a corner, before Son Heung-min made it 2-0, catching Manuel Neuer out of his goal.
So long as the game was goalless, Germany knew that just one goal would have seen them progress and set up a mouthwatering last 16 clash with Brazil.
But they were caught out as they pushed men forward in the closing stages.
Instead it is Sweden or Mexico who progress from the group and will face Brazil – depending on their result later this evening.
More to follow.
Cho, Yong Lee, Yun, Young-Gwon Kim, Hong, Jae-Sung Lee, Jung, Jang, Moon (Ju 69), Koo (Hwang 56), Son, Hwang (Go 79), Seung-Woo Lee, Min-Woo Kim, Ki, Jin-Hyeon Kim.
Subs not used: Seung-Gyu Kim, Jeong, Oh, Park, Shin-Wook Kim.
Bookings: Jung, Jae-Sung Lee, Moon, Son.
Neuer, Kimmich, Hummels, Sule, Hector (Brandt 78), Khedira (Gomez 58), Kroos, Goretzka (Muller 63), Ozil, Reus, Werner, Gundogan, ter Stegen.
Subs not used: Trapp, Plattenhardt, Ginter, Draxler, Rudiger.
Referee: Mark Geiger (USA)