Taricco, a former Tottenham Hotspur player, was sent off after arguing with the referee while appealing for a penalty during the match against Daejeon Hana Citizen.
The 52-year-old then screamed the word "racista", the Spanish word for racist, at the referee before making a slanted-eye gesture, the K-League said in a statement.
Taricco, in a statement to the committee, had said that he pointed to his eyes to indicate that the referee had not directly observed a handball.
"The disciplinary committee stated that 'the evaluation of a specific act should be based on the universal meaning of the act as expressed, rather than the perpetrator's stated intentions,'" the K-League said.
"Based on these criteria, coach Taricco's actions were identical to the widely-known 'slant-eye' derogatory gesture against Asians and sufficiently inflicted feelings of racial insult on the recipient."
Taricco was also fined 20 million won ($13,643).