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Iceland's unbeaten start to their men's Olympic handball campaign came to an end when they were edged out 22-21 by Group B rivals South Korea in Beijing.
But Germany, beaten by Iceland in their previous encounter, hit back with a 25-23 win over Egypt while Denmark beat Russia 25-24 in another tight game.
In Group A, France made it three wins from three games by inflicting a first defeat on Croatia, winning 23-19.
Poland beat Brazil 28-25 while Spain eased to a 36-22 win over China.
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