Seeded second and fourth respectively, the two badminton veterans followed Chen Long, Son Wan Ho and Chou Tien Chen out of the exit door.
Lee lost Japan's Kenta Nishimoto, who also knocked him out at the French Open last year, in a close match 19-21, 21-18, 21-19 in 78 minutes.
As for Lin Dan, he was defeated by Indonesia's Ihsan Maulana Mustofa for the first time in five meetings, losing 16-21, 21-18, 17-21.
2 - For the first time in history, Lin Dan and Chen Long are beaten by two Indonesians on the same day in a BWF tournament. Double.
— Badminton Talk (@BadmintonTalk) January 17, 2018
The remaining seeded men's singles players at the tournament were 2017 winner Angus Ng Ka Long, Wang Tzu Wei and Viktor Axelsen, who beat Lee Hyun Il of South Korea 18-21, 21-14, 21-5.
(Picture: Twitter/Badminton Association of Malaysia)