Huge crowds gave South Korea's national football squad a resounding welcome on their return home Tuesday despite their failure to advance beyond the final 16 in the World Cup in South Africa.

About 15,000 fans, some waving banners bearing the names of the players, massed in a park in central Seoul to applaud captain Park Ji-Sung and other players at a special welcome home ceremony.

Fans praised the team for a spirited performance after South Korea reached the final 16 for the first time on foreign soil but were eliminated Saturday by Uruguay in the first knockout stage match.

Coach Huh Jung-Moo said his team deserved praise for their achievement which had given South Korea a major confidence boost in its ability to perform against the world's best.

"We have achieved our original goal. My players had done their best," he told reporters.

"However, we have a long way to go," he said, suggesting South Korea should step up a long-term program to develop skills further.

South Korea first took part in the World Cup in 1954 and again in 1986, since when they have qualified for every tournament.

But they have only made it to the round of 16 once before, in 2002, when the country co-hosted the event with Japan. The South went on to reach the semi-finals.

The squad can expect substantial prize money, with each player to receive up to 170 million won ($A164,047) for reaching the final 16.

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