In a dramatic encounter, Qatar threw away a two-goal lead against South Korea, but recovered to win and dent the visitors' World Cup hopes.
Despite the defeat, qualification for Russian Federation is still in South Korea's own hands.
Qatar largely owed their victory to the industry and finishing of Al-Haydos and young forward Akram Afif.
Meanwhile, South Korea remains a point ahead of Uzbekistan in the race for the automatic second qualifying spot in the group.
They host already-qualified Iran in their penultimate qualifier in late August before a trip to Uzbekistan in the final round of matches in early September.
"We're just holding on to second place, and the general feeling around the KFA is that even if we do qualify for the World Cup, we won't be so competitive if we play the way we have", Yonhap news agency quoted an unnamed "high ranking" Korean FA official as saying on Wednesday.
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The top two teams from each of the two groups will advance directly to the 2018 World Cup in Russian Federation.
The team that finishes third will enter a playoff over two legs for a place in Russian Federation. They're winless away from home with one draw and three losses.
Fossati resigned a few hours after leading his team to a 3-2 win over South Korea, a result that kept the nation's faint hopes of reaching next year's World Cup finals in Russian Federation alive.
Spurs will then travel to America later in the month to take part in the International Champions Cup where they will play Paris Saint-Germain, Roma and Manchester City.
The Korea Football Association (KFA) is expected to sack beleaguered head coach Uli Stielike this week, succumbing to the pressure that has been mounting since last fall.
The KFA gave Stielike a vote of confidence in April despite growing calls for his dismissal.
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