Sindhu, the reigning world champion and two-time Olympic medallist, could neither match the pace nor breach the defence of the world number six Korean, losing 16-21 12-21 in the 40-minute lop-sided clash.
It will be Sindhu's third final appearance in the season-ending tournament. She had won the title in 2018 to become the only Indian to achieve the feat.
Sindhu finished in the second position in group A, behind Chochuwong and her opponent of the semifinal stage will be decided in a draw later in the day.
The former world no. 1 Indian was no match for Lee, the reigning All England champion, going down 19-21 14-21 in 37 minutes to end his campaign.
The women's doubles pair of Ashwini Ponnappa and N Sikki Reddy suffered their second successive loss in the event, going down fighting 19-21 20-22 to Bulgaria's Gabriela Stoeva and Stefani Stoeva
Satwik's recurring knee pain aggravated and the duo decided to pull out keeping in mind the upcoming BWF World Championships.
Sindhu looked in great control as she opened up a 5-2 lead and though Line made it 7-6, the Indian quickly reeled off 10 straight points to march to 16-8 and seal the opening game comfortably.
India's top shuttler PV Sindhu prevailed Denmark's Line Christophersen in straight sets 21-14, 21-16 in the BWF World Tour Finals 2021 Women's Singles group A match in Bali.
Srikanth beat France's Toma Junior Popov 21-14, 21-16 in 42 minutes in his opening match of group B.
It will be the best ever representation for India at the year-end tournament with as many as seven of them qualifying for the USD 1,50,000 event.
The 20-year-old from Almora has enjoyed an impressive run on the BWF world tour and is currently ranked fifth in the World Tour rankings.
PV Sindhu will not a direct entry in the BWF World Tour Finals as the badminton body announced the decision to do away with automatic invitations for current world champions.
Sindhu prevailed 21-19, 21-17 over Japan's Nozomi Okuhara in the summit clash to claim the coveted title, last month in Guangzhou.
Sindhu was in a solid form in 2018 but somehow the top podium finish remained elusive as she settled for a silver medal in most of the tournaments.
Sindhu broke her silver jinx in great fashion on last Sunday by defeating her nemesis Nozomi Okuhara of Japan 21-19, 21-17 in the women's singles.
Sindhu ended the year on a high, beating Japan's Nozomi Okuhara 21-19, 21-17 in the summit clash to claim the World Tour finals crown.
After losing seven successive summit clashes, Olympic silver medallist Sindhu finally settled her finals blues with a 21-19 21-17 win over Japan's Nozomi Okuhara to lift the prestigious season-ending trophy.
Dubbed a bridesmaid after falling short of gold on a number of occasions, Sindhu finally broke her jinx, let out tears of relief and joy.
Sindhu reached the final of the prestigious tournament after averting a fightback from Intanon.
Playing her third successive year-ending finale, Sindhu dished out some deceptive strokes and showed precision during the 35-minute contest to prevail over world no 12 Beiwen Zhang.
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