In the other semi-final, hosts China outplayed Japan 3-0 to stay on course to win their record fifth consecutive title and ninth overall.
Gade (right), who will quit the sport after the London Olympics, failed to get the better of Lee Hyun Il in the opening singles. He took the first games 21-17 but then lost the next two 21-14, 21-10.
“I felt I had a chance but I wasn't able to turn it around to play on my terms. I should have been more aggressive,” said the 35-year-old former world No. 1.
“I have some regrets from the Thomas Cup, but on the whole, a lot of great memories.”
Former world No. 1s Carsten Mogensen-Mathias Boe then squared the match when they defeated Yoo Yeon Seong-Ko Sung Hyun 21-10, 21-10 to give the Europeans some semblance of hope.
Jan O Jorgensen tried his best against Shon Wan Ho as the pair fought tooth and nail before it was the latter who came away with a 21-13, 14-21, 21-16 victory.
Pin-up Lee Yong Dae, partnering Kim Sa Rang (left), then did his part as he guided the pair to a come-from-behind victory over Jonas Rasmussen-Joachim Fischer Nielsen, winning 11-21, 21-19, 21-15 to clinch the winning point for South Korea.
World, Asian and Olympic champion Lin Dan, who is chasing his fifth winners’ medal in sixth attempts, gave China the perfect start against Sho Sasaki (below), in the opening singles, winning 23-21, 21-17.
A visibly happy Lin Dan said: “My opponent played well but I gave it my all to give us a god start.
“South Korea will be tough opponents in the final. China, however, will go out like youngsters and give them a good fight.”
World champions Cai Yun-Fu Haifeng then made it 2-0 when they tamed Shoji Sato-Naoki Kawamae 25-23, 21-18 in 49 minutes.
Chen Long then took care of Kenichi Tago, winning 21-13, 21-16 in exactly one hour to make it 3-0
For full results, click here.