Chile - South Korea Trade 2024 Q2: Resource-Tech Synergy

Key Market Takeaways: Chile - South Korea Trade

The bilateral trade relationship between Chile and South Korea reflects a strong net exporter role for Chile, despite recent export declines in Q2 2024.

• Economic Pulse: Chile maintains a $896.26M trade surplus with South Korea ($1.25B exports vs. $353.74M imports), though exports saw a sharp YoY contraction (-14.42% to -33.19%).
• Exchange Structure: Chile - South Korea trade statistics reveal a resource-for-tech complementarity—Chile supplies ores and copper (73.11% of exports), while South Korea dominates with vehicles and machinery (29.16% of imports).
• Strategic Interdependence: Highly complementary economies, with South Korea leveraging Chilean raw materials for industrial production and Chile dependent on Korean high-tech goods.

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

Chile-South Korea Trade Trend in Q2 2024

Chile Export Performance: Shipments to South Korea

• Total Volume: $1.25B in Q2 2024.
• Growth Trend & Context:
  • YoY decline persisted across all months, worsening from -14.42% in April to -33.19% in June.
  • No specific trade news to explain the contraction.
• Key Volatility: Sharpest MoM drop in May (-11.45%), followed by a milder decline in June (-3.66%).

Chile Import Performance: Sourcing from South Korea

• Total Volume: $353.74M in Q2 2024.
• Growth Trend & Context:
  • Mixed YoY performance: +35.62% in April, then shifted to -6.17% in May and -1.33% in June.
• Key Volatility: Steep MoM drops in April (-18.48%) and May (-20.72%), with a slight recovery in June (+2.63%).

Chile - South Korea Trade Balance & Market Dynamics

• Net Position: Chile holds a trade surplus of $896.26M (Exports: $1.25B > Imports: $353.74M).
• Relationship Status: Strong net exporter role, with exports exceeding imports by 3.5x.

Chile Import Trend from South Korea 2024 Q2 (Source: yTrade)**

Chile Export Trend to South Korea 2024 Q2 (Source: yTrade)**

Get Historical Chile South Korea Trade Records

Chile-South Korea Top Trading Products in Q2 2024

Chile Export Profile: What Does Chile Sell to South Korea

• Top Commodity: Rank #1 export is HS 26 (Ores, slag, and ash) at 46.68% of total exports.
• Demand Driver: South Korea uses these raw materials for industrial processing, likely in steel production or electronics manufacturing.
• Concentration: Trade is highly concentrated, with HS 26 and HS 74 (Copper and articles thereof) together accounting for 73.11% of exports.

Chile Import Profile: What Does Chile Buy from South Korea

• Top Commodity: Rank #1 import is HS 87 (Vehicles) at 29.16% of total imports.
• Dependency Nature: Critical technology dependency, as South Korea supplies Chile with high-value manufactured goods like vehicles, machinery (HS 84), and electrical equipment (HS 85).

Chile - South Korea Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Chile exports raw materials (ores, copper) while importing high-tech goods (vehicles, machinery).
• Value Chain Position: South Korea holds the higher value-add position, supplying advanced manufactured products, while Chile remains a key supplier of industrial inputs.

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 stabilize in Q3 2024, though export declines may persist due to weak global demand for industrial inputs like ores and copper. The volatility in South Korean imports—particularly vehicles and machinery—suggests cautious demand, but a rebound in high-tech orders could partially offset Chile’s export slump. Long-term, the resource-for-tech complementarity will keep the trade relationship intact, but Chile must address over-reliance on raw material exports to avoid vulnerability to price swings. Traders should monitor South Korea’s manufacturing output for early signals of demand shifts.

Strategic Moves

• Diversify Export Basket: Chilean exporters must reduce dependence on HS 26 and HS 74 by targeting niche markets in processed minerals or agricultural goods, where South Korea has growing demand.
• Lock in Tech Supply Chains: Importers should negotiate long-term contracts for critical machinery (HS 84) and vehicles (HS 87) to hedge against future price spikes and supply disruptions.
• Leverage Trade Agreements: Both nations should maximize existing FTAs to streamline tariffs on high-value goods, ensuring smoother trade flows for Chilean copper and South Korean electronics.

Frequently Asked Questions

How did Chile - South Korea trade perform in 2024 Q2?

Chile exported $1.25B to South Korea but faced a YoY decline, while imports from South Korea totaled $353.74M with mixed YoY growth.

What are the top exports from Chile to South Korea?

HS 26 (Ores, slag, and ash) and HS 74 (Copper and articles thereof) dominate, accounting for 73.11% of Chile’s exports to South Korea.

What does Chile import from South Korea?

HS 87 (Vehicles) is the top import, followed by machinery (HS 84) and electrical equipment (HS 85), reflecting a tech-dependent trade relationship.

What is the trade balance between Chile and South Korea?

Chile holds a trade surplus of $896.26M, with exports exceeding imports by 3.5x, reinforcing its strong net exporter role.