Simone Pafundi’s palatial, late free-kick eliminated Korean Republic and secured Italy a place in the FIFA U-20 World Cup final for the first time.
Carmine Nunziata’s team will now collide with Uruguay which earlier defeated Israel 1-0 in the first semi-finals for the trophy on Sunday.
Cesare Casadei broke the deadlock at La Plata stadium with a sumptuously-cushioned finish from just inside the box in the 14th minute.
But Lee Seungwon equalised from the penalty spot after Bae Junho was felled in the 23rd minute.
Casadei, by netting for the seventh time in Argentina, outranked Paolo Rossi and Toto Schillaci and became the outright highest-scoring Italian in one edition of a FIFA tournament.
Kim Joonhong made a superb block from a point-blank Matteo Prati header.
But he was left rooted to the spot when Pafundi curled a free-kick over the wall and into the top corner in the 86th minute.
Pafundi’s late goal proved to be the decider as Italy held on for a hard-fought 2-1 victory over Korea Republic in the semi-finals played at La Plata Stadium.