In a blistering 79th minute counter attack Kim Kinya was set free down the right wing and shimmied past a series of challenges before Lee Sangheon turned the ball into the middle of the penalty area for Jaewon to drive the ball home.
Brazil’s Geovane received a red card for a high challenge on substitute Lee Sangheon in the closing stages of the game to leave the Koreans with a historic win and at the summit of Group B.
In Group B’s other fixture England drew 1-1 with Guinea as it rued a first half penalty miss from Marcus Edwards.
Moussa Camara saved the Tottenham Hotspur youngster’s spot-kick before Kaylen Hinds grabbed England’s opener with a 61st minute header.
Naby Bangoura levelled up the score 15 minutes later as Guinea carved open several chances and forced stand-in goalkeeper Alfie Whiteman into a series of stunning saves, including a one-on-one stop against Ives Camara.
In Group A, defending champion - and the tournament’s most successful nation - Nigeria won 2-0 against USA.
The Super Eagles turned on the style in the second-half with goals from Chukwudi Agor and Victor Osimhen as they remain on track to claim their fifth success at U-17 level.
Host Chile drew 1-1 with Croatia in Groups A’s other game as it came back from a goal behind at the Estadio Nacional in Santiago.
Croatia captain Nikola Moro gave his side the lead after eight minutes as he looped the ball over goalkeeper Zacarias Lopez’s after a cleared set-piece.
Chile fought hard to earn a larger share of possession and Yerko Levia snatched the equaliser on the counter attack after 33 minutes before both teams had chances to win the game in the second period.