Chile - South Korea Trade 2023 Q4: Resource-for-Tech Decline

Key Market Takeaways: Chile - South Korea Trade

The bilateral trade relationship between Chile and South Korea contracted in Q4 2023, with both exports and imports declining YoY.

• Economic Pulse: Chile maintained a $872.94M trade surplus (exports: $1.22B, imports: $347.06M), but both flows saw sharp YoY drops, signaling weakened demand.
• Exchange Structure: Chile - South Korea trade statistics reveal a resource-for-tech model—Chile supplies ores (34.41% of exports) while importing vehicles (36.23% of imports).
• Strategic Interdependence: Highly complementary but imbalanced: Chile relies on South Korea for advanced manufacturing, while South Korea depends on Chilean raw materials.

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

Chile-South Korea Trade Trend in Q4 2023

Chile Export Performance: Shipments to South Korea

• Total Volume: $1.22B in Q4 2023.
• Growth Trend & Context:
  • YoY declines persisted across all months (-22.31% in Nov, -27.21% in Dec), signaling sustained demand contraction.
• Key Volatility: December saw the highest monthly export value ($447.17M) with a 22.16% MoM surge, offsetting November's -9.93% drop.

Chile Import Performance: Sourcing from South Korea

• Total Volume: $347.06M in Q4 2023.
• Growth Trend & Context:
  • YoY declines deepened (-24.2% in Oct, -30.83% in Nov), reflecting reduced import appetite.
• Key Volatility: November recorded the sharpest MoM jump (+20.45%), but December imports fell -9.18% MoM.

Chile - South Korea Trade Balance & Market Dynamics

• Net Position: Chile held a $872.94M trade surplus with South Korea (Exports: $1.22B > Imports: $347.06M).
• Relationship Status: Chile maintains a strong net exporter position, though both trade flows contracted YoY.

Chile Import Trend from South Korea 2023 Q4 (Source: yTrade)**

Chile Export Trend to South Korea 2023 Q4 (Source: yTrade)**

Get Historical Chile South Korea Trade Records

Chile-South Korea Top Trading Products in Q4 2023

Chile Export Profile: What Does Chile Sell to South Korea

• Top Commodity: Rank #1 export is HS 26 (Ores, slag, and ash) at 34.41% of total exports.
• Demand Driver: South Korea uses these raw materials for industrial processing, likely in steel production or electronics manufacturing.
• Concentration: The top 3 exports (HS 26, 74, 28) account for 85.65% 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 87 (Vehicles) at 36.23% of total imports.
• Dependency Nature: Imports are dominated by high-value manufactured goods (vehicles, machinery, electronics), reflecting critical technology dependency on South Korea.

Chile - South Korea Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Chile supplies raw materials (ores, copper) while South Korea exports advanced manufactured goods (vehicles, machinery).
• Value Chain Position: South Korea holds the higher value-add position, exporting complex products (HS 87, 84, 85) versus Chile’s commodity-driven exports (HS 26, 74, 28).

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 expected to persist in 2024, but both exports and imports will likely face continued volatility due to fluctuating commodity demand and global supply chain pressures. The structural reliance on raw material exports (HS 26, 74, 28) leaves Chile vulnerable to price swings, while South Korea’s dominance in high-value manufactured goods (HS 87, 84, 85) ensures sustained import dependency. If industrial demand in South Korea rebounds, Chile’s ores and copper shipments could recover, but exporters must brace for prolonged uncertainty.

Strategic Moves

• Diversify Export Composition: Chilean firms should reduce reliance on raw materials by expanding into processed minerals or value-added products to capture higher margins and mitigate price volatility.
• Lock in Long-Term Contracts: Given South Korea’s critical role as a tech supplier, Chilean importers should secure multi-year agreements for vehicles and machinery to hedge against future supply disruptions.
• Optimize Trade Financing: Traders on both sides should leverage currency hedging tools and preferential FTA terms to stabilize cash flows amid exchange rate fluctuations.

Frequently Asked Questions

How did Chile - South Korea trade perform in 2023 Q4?

Chile's exports to South Korea totaled $1.22B, while imports were $347.06M, both showing YoY declines (-22.31% to -30.83%).

What are the top exports from Chile to South Korea?

HS 26 (Ores, slag, and ash) dominated at 34.41%, followed by HS 74 and HS 28, accounting for 85.65% of total exports.

What does Chile import from South Korea?

HS 87 (Vehicles) led at 36.23%, with other key imports including machinery and electronics (HS 84, 85).

What is the trade balance between Chile and South Korea?

Chile maintained a $872.94M trade surplus, though both trade flows contracted YoY.