
Lee, 23, was caught driving under the influence in May 2020 and fined 5 million won on Aug 5 that year.
Under KFA regulations, any player who has been fined at least 5 million won for such an offence cannot be eligible for selection for a minimum of three years.
Lee’s ineligibility period ends only next month.
“The KFA humbly acknowledge that in the selection process for the Asian Games national team players announced on (July) 14, they selected players who did not conform to the national football team operating regulations,” it said in a statement.
“(We) will do our best to prevent similar situations from recurring through future administrative system maintenance.”
Lee was also selected for the Under-23 team in 2021 due to an oversight.
South Korea are looking to win a third straight football gold medal at the Asian Games in Hangzhou, China, which were postponed from last year due to the Covid-19 pandemic.
The Games run from Sept 23 to Oct 8.