Federer’s win thus sets up a final showdown on Sunday with Juan Martin del Potro who cruised to a 6-2 6-3 win over Milos Raonic.
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Chung’s fairytale run at the Australian Open in January came to a crashing halt when he retired with foot blisters while trailing Federer 6-1 5-2 in their semi-final.
Federer mixed overpowering serves and pinpoint groundstrokes to advance to the fourth round of the tournament.
The 36-year-old became the most decorated person in the awards’ history as he beat fellow nominees Nadal, Cristiano Ronaldo and British trio Chris Froome, Mo Farah and Lewis Hamilton to claim the sportsman of the year prize.