Iraq were beaten 2-0 in Monday's last-four showdown as goals from Lee Jung-hyub and Kim Young-gwon saw South Korea reach the final, where they will face either hosts Australia or United Arab Emirates.
Shenaishil was philosophical in defeat and believes the squad have a chance to go on to better things in the coming years.
"As we knew, it was going to be a difficult match because the loser leaves and the winner goes to the final," he said.
"Korea have quality players, many who play outside Korea in high-quality leagues.
"We made two mistakes and they took advantage of them but if we had scored early I think we could have managed to get a draw.
"There are good signs in the team that we can build for the future because we have World Cup qualifiers coming up.
"There are good quality players and hopefully we can work together to work for the future of the Iraqi national team."
On his own future, Shenaishil said the matter was still to be resolved, as he is still contracted to Qatar SC in the Qatar Stars League.
"I've got a contract with the Qatar club and I want to thank them for letting me join the Iraq football federation and I have another game with them on February 5," he said.
"After my contract ends with the club, I can't predict my future, so after that I can sit down and discuss my future."
‘He instantly popped into our ratings as one of the best U21 midfielders in Europe. The impressive thing is Slot has made him into more of a no.6' Inside Ryan Gravenberch's transformation at Liverpool
‘I don’t think Liverpool would look at Ollie Watkins, a striker isn’t a pressing issue for them – it’s Arsenal who need one’ Former Reds star explains why his old club don’t need an out-and-out forward this summer
