The 36-year-old scored 13 goals to help Jeonbuk to their second straight K League Classic title this year and became the first player to win back-to-back league MVP awards.
Lee started his career with hometown club Pohang in 1998 and after unsuccessful stints in Germany and England has been revitalised since joining Jeonbuk for the 2009 season.
He has won the league MVP award a record four times and is the league's record scorer with 180 goals.
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"Jeonbuk is very special to me, like a second hometown," he was quoted as saying on the club's website on Wednesday. "I am excited to spend two more years with the fans of Jeonbuk.
"Thanks coach Choi Kang-hee and the Jeonbuk team for trusting in me. I will try to win the K League Classic for a third consecutive year, as well as win the AFC Champions League."
No financial details of the deal were disclosed.
(Reporting by Jee Heun Kahng; Writing by Peter Rutherford; Editing by Nick Mulvenney)
