The third-seeded Indian tried everything at her disposal but couldn't find a way to get past the world number four Korean, going down 14-21 17-21 in 48 minutes.
In the second game, Sindhu took a lead right from the start and took an 8-2 lead. The Indian shuttler maintained the lead against the Thai shuttler Busanan Ongbamrungphan winning the game 21-16.
Sindhu, a two-time Olympic medallist, trounced USA's Lauren Lam 21-15 21-14, while Srikanth saw off Malaysia's Daren Liew 22-20 21-11 at the Palma Stadium.
Lakshya Sen and double Olympic medallist P V Sindhu will lead the Indian campaign at the Korea Open Super 500 tournament starting Tuesday.
The semifinal was a marathon affair against Indonesia's World No 5 Anthony Ginting with the Indian winning the contest 21-19, 19-21, 21-18.
Bengaluru-based shuttler Ajay Jayaram speaks to CE about his decision to retire from badminton, his academic calling, and what lies ahead
The apex body also postponed the World Junior badminton championships which was scheduled to be held in China.