Chile - South Korea Trade 2023 Q1: Surplus & Volatility

Key Market Takeaways: Chile - South Korea Trade

The bilateral trade relationship between Chile and South Korea showed mixed growth with high volatility in Q1 2023.

• Economic Pulse: Chile posted a $1.28B trade surplus, with exports ($1.77B) dwarfing imports ($485.56M). Volatility spiked—March exports surged 31.06% YoY while imports crashed 37.22%.
• Exchange Structure: Chile - South Korea trade statistics reveal a resource-for-tech model: Chile ships raw materials (84.99% concentration in copper/chemicals) for South Korean vehicles and machinery (29.76% of imports).
• Strategic Interdependence: Highly complementary but asymmetric—South Korea captures higher value-add in manufactured goods, while Chile remains a commodity exporter.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Chile-South Korea Trade Trend in Q1 2023

Chile Export Performance: Shipments to South Korea

• Total Volume: $1.77B in Q1 2023.
• Growth Trend & Context:
  • YoY growth was mixed: January (-9.05%) and February (-13.57%) saw declines, but March surged (+31.06%).
  • No specific trade news to explain the volatility.
• Key Volatility: March exports spiked 89.16% MoM, the highest monthly growth in the quarter.

Chile Import Performance: Sourcing from South Korea

• Total Volume: $485.56M in Q1 2023.
• Growth Trend & Context:
  • YoY trends were sharply divergent: January (+28.52%) and February (+12.48%) grew, while March collapsed (-37.22%).
• Key Volatility: March imports plummeted 26.55% MoM, the lowest monthly performance.

Chile - South Korea Trade Balance & Market Dynamics

• Net Position: Chile recorded a trade surplus of $1.28B (Exports $1.77B - Imports $485.56M).
• Relationship Status: Chile is a net exporter to South Korea, with exports dominating by a 3.6:1 ratio.

Chile Import Trend from South Korea 2023 Q1 (Source: yTrade)**

Chile Export Trend to South Korea 2023 Q1 (Source: yTrade)**

Get Historical Chile South Korea Trade Records

Chile-South Korea Top Trading Products in Q1 2023

Chile Export Profile: What Does Chile Sell to South Korea

• Top Commodity: Rank #1 export is HS Code 28 (Inorganic chemicals, precious metal compounds, isotopes) at 34.00% of total exports.
• Demand Driver: South Korea uses these for industrial processing, likely in electronics or chemical manufacturing.
• Concentration: The top 3 exports (HS 28, 74, 26) account for 84.99% of total exports, indicating extreme concentration in raw materials.

Chile Import Profile: What Does Chile Buy from South Korea

• Top Commodity: Rank #1 import is HS Code 87 (Vehicles, excluding railway) at 29.76% of total imports.
• Dependency Nature: Critical technology dependency, as South Korea supplies high-value manufactured goods like vehicles and machinery (HS 84, 89).

Chile - South Korea Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Chile exports raw materials (copper, inorganic chemicals) while importing finished industrial goods (vehicles, ships, machinery).
• Value Chain Position: South Korea holds the higher value-add position, with exports dominated by complex manufactured products. Chile’s exports are primarily low-margin commodities.

Import Analysis by Product: South Korea to Chile (Source: yTrade)

Export Analysis by Product: Chile to South Korea (Source: yTrade)

Check Detailed Chile-South Korea Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Chile’s trade surplus with South Korea is likely to persist in Q2 2023, driven by sustained demand for raw materials like inorganic chemicals (HS 28) and copper (HS 26). However, March’s extreme volatility in both exports (+31.06% YoY) and imports (-37.22% YoY) signals potential supply chain disruptions or pricing fluctuations. Traders should anticipate short-term swings but expect long-term stability due to the entrenched resource-for-tech complementarity. South Korea’s reliance on Chilean commodities and Chile’s dependence on Korean high-tech goods will keep the trade relationship resilient, though external shocks (e.g., commodity price shifts) could disrupt momentum.

Strategic Moves

• Lock in Long-Term Contracts: Chilean exporters of inorganic chemicals and copper should secure multi-year agreements with South Korean industrial buyers to mitigate price volatility and ensure stable revenue streams.
• Diversify Import Sources: Chilean importers of vehicles (HS 87) and machinery (HS 84) must explore alternative suppliers (e.g., Japan, Germany) to reduce overreliance on South Korea and hedge against sudden import collapses.
• Invest in Value-Add Processing: Chile should prioritize domestic refining or semi-processing of raw materials (e.g., copper cathodes instead of ore) to capture higher margins and reduce exposure to commodity price swings.

Frequently Asked Questions

How did Chile - South Korea trade perform in 2023 Q1?

Chile exported $1.77B to South Korea in Q1 2023, with mixed YoY growth (January/February declines, March surge). Imports totaled $485.56M, showing sharp YoY fluctuations (January/February growth, March collapse).

What are the top exports from Chile to South Korea?

Chile’s top exports to South Korea are inorganic chemicals (HS Code 28), copper (HS 74), and ores (HS 26), accounting for 84.99% of total exports.

What does Chile import from South Korea?

Chile primarily imports vehicles (HS Code 87) and machinery (HS 84, 89) from South Korea, reflecting a technology-dependent trade relationship.

What is the trade balance between Chile and South Korea?

Chile recorded a trade surplus of $1.28B with South Korea in Q1 2023, driven by a 3.6:1 export-to-import ratio.