On Saturday, the Iranian team defeated the Japanese side 37-32 in its last Group A fixture staged at Seo-Suwon Chilbo Gymnasium in Suwon, located about 30 kilometers (19 miles) south of the capital Seoul, Press TV reported.
The Iranian squad will take on South Korea on Tuesday.
On Friday, Iran notched up its first victory in the tourney powering past the Uzbek squad 37-18 in its opener played at the same stadium it defeated Japan.
The tournament kicked off on January 18, and will continue until January 28.
It acts as the Asian qualifying tournament for the 2019 World Men's Handball Championship. For the first time, Australia, New Zealand and Bangladesh have taken part in the event.
Iran had been drawn in Group A along with Uzbekistan and Japan.
Australia, Bahrain and Oman were in Group B.
Group C consisted of Bangladesh, India, South Korea and the UAE. China, New Zealand, Qatar and Saudi Arabia formed Group D.