David Notoane's men marked their third appearance at the quadrennial global sporting event with a loss to the hosts.
South Africa began their Olympics Group A campaign with a 1-0 defeat by Japan in a one-sided affair at Ajinomoto Stadium on Thursday.
Real Madrid new signing Takefusa Kubo struck in the 71st minute to separate the two sides.
Following the match, South Africa sit third in Group A by Mexico who beat France 4-1 earlier on, while Japan are second.
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