The players - Middlesbrough striker Lee Dong-guk, captain Lee Woon-jae, Kim Sang-sik and Woo Sung-yong - were named in news reports as drinking until the early hours at a Jakarta brothel the day before a 2-1 loss to Bahrain in July.
The team reached the semifinal of the competition, losing to eventual champion Iraq on penalties.
The players will not be selected for South Korea in FIFA-organized tournaments, including upcoming World Cup qualifiers, for one year.
They will also serve longer suspensions from international friendlies and the nation's Cup competition. Lee Woon-jae will be banned from those matches for three years, with the other three players under two-year suspensions.
Lee Woon-jae, the team's 34-year-old goalkeeper, must also serve 80 hours community service, with the other players to perform 40 hours.
The players will still be able to play for their clubs.
Lee Woon-jae made a tearful apology for his behavior earlier this week at the KFA, saying he would "accept any punishment that comes my way."