Halilhodzic's men will take on South Korea in Porto Alegre on Sunday in their second Group H matches with Algeria having lost their opening fixture 2-1 to Belgium, while Hong Myung-bo's Koreans also gave up a lead to draw 1-1 with Russia.
While Algeria arrived in Brazil having won all three friendlies this year and scoring a total of seven goals, Halilhodzic argued South Korea are superior to his side, despite the Asian team having won just two of seven games in 2014.
Algeria need at least a draw at the Estadio Jose Pinheiro Borba to maintain their bid for a maiden berth in the knockout stages of the World Cup.
"The Korean team is basically better than the Algerian team," the Bosnian coach said at his pre-match press conference.
"They are disciplined, structured and well-organised. They're also fast, explosive and aggressive."
For all Halilhodzic's claims about South Korea's strengths, the Asians' form in 2014 indicate Algeria should be rated favourites in Porto Alegre.
South Korea have been held scoreless in four games this year and the toothless nature of their attacking play was again on display against Russia, as they only found the back of the net thanks to a huge mistake from goalkeeper Igor Akinfeev.
Hong's men have also conceded 12 goals this year, including six in their past three games, which could suit the attacking Algerians.
Although Halilhodzic underlined his team's inexperience as well - with Algeria having accumulated the lowest total of international appearances of any squad in Brazil - Hong has also selected a relatively unproven group of players, with South Korea one of the five youngest squads at the World Cup.
The 61-year-old former Yugoslavia international claimed his team's lack of experience was the reason Belgium scored twice in the final 20 minutes to win in Belo Horizonte.
"This team is rather young and we didn't train a lot before the World Cup," Halilhodzic said.
"Psychologically, it was difficult to sustain pressure for another 20 minutes. It's a bit premature to expect major achievements from this team but we're making progress. We paid a high toll for mistakes."
South Korea and Algeria have never met previously at senior international level.
