The Asian runner-up, China, won the first, second, and fourth sets 25-16, 25-23, 25-22, losing the third set 33-31 in Metropolitan Hall.
In another match, world bronze medalist, France, handed South Korea a 3-0 defeat, winning 25-16, 25-13, 25-16.
Iran's South Korean coach Park Ki-Won bemoaned his team's sluggish start.
"Our players started playing our volleyball too slow today, our players started to wake up too slow," AFP quoted Park as saying.
"We need more experiences in international matches."
China meets France Wednesday in the eight-nation round-robin tournament. The winner and top-placed Asian team will qualify for Athens Games.
Iran was on cloud nine as it crushed South Korea for the first time in its history Sunday.
Iran stunned the Koreans, winning the qualifier in three straight sets.
Korea, which was thrashed by China 3-0 Saturday received the second blow as it lost 18-25 21-25 16-25.
On Saturday, Iran lost its opening match against Canada 3-0.
... Payvand News - 5/25/04 ... --