Paraguay - South Korea Trade 2023 Q1: Volatile & Complementary

Key Market Takeaways: Paraguay - South Korea Trade

The bilateral trade relationship between Paraguay and South Korea shows extreme volatility and near-balanced trade in Q1 2023.

• Economic Pulse: Paraguay recorded a $4.12M trade deficit with South Korea ($44.22M imports vs. $40.10M exports), driven by erratic export surges (+1,361% YoY in Jan) and stagnant import demand (-25% YoY in Jan).
• Exchange Structure: Paraguay - South Korea trade statistics reveal a resource-for-tech model—Paraguay supplies cereals (94.18% of exports) while importing vehicles (53.45% of imports) and machinery.
• Strategic Interdependence: The partnership is highly complementary but imbalanced, with South Korea holding the high-value position in the exchange.

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

Paraguay-South Korea Trade Trend in Q1 2023

Paraguay Export Performance: Shipments to South Korea

• Total Volume: $40.10M in Q1 2023.
• Growth Trend & Context:
  • Extreme YoY volatility: +1,361% in Jan, +4,064% in Feb, then +418% in Mar. Base effects likely at play (prior-year lows).
  • No relevant trade news to explain the surge.
• Key Volatility: Feb saw a 121% MoM spike, followed by a -97% crash in Mar.

Paraguay Import Performance: Sourcing from South Korea

• Total Volume: $44.22M in Q1 2023.
• Growth Trend & Context:
  • Mixed YoY performance: -25% in Jan, +9% in Feb, -18% in Mar. No clear recovery trend.
• Key Volatility: Feb imports jumped 33% MoM, then dropped -8% in Mar.

Paraguay - South Korea Trade Balance & Market Dynamics

• Net Position: $4.12M trade deficit (Imports $44.22M > Exports $40.10M).
• Relationship Status: Near-balanced trade, with Paraguay slightly more reliant on South Korean goods. Volatility in exports suggests unstable demand or pricing shifts.

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

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

Get Historical Paraguay South Korea Trade Records

Paraguay-South Korea Top Trading Products in Q1 2023

Paraguay Export Profile: What Does Paraguay Sell to South Korea

• Top Commodity: Rank #1 export is HS Code 10 (Cereals, 94.18%), dominating trade.
• Demand Driver: South Korea buys these for food security and industrial processing (e.g., animal feed, food production).
• Concentration: Extreme reliance on cereals (94.18%), indicating mono-export risk.

Paraguay Import Profile: What Does Paraguay Buy from South Korea

• Top Commodity: Rank #1 import is HS Code 87 (Vehicles, 53.45%), a majority share.
• Dependency Nature: Critical technology dependency—South Korea supplies Paraguay with high-value machinery (vehicles, electronics, and industrial equipment).

Paraguay - South Korea Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Paraguay exports raw materials (cereals) in exchange for South Korean manufactured goods (vehicles, machinery).
• Value Chain Position: South Korea holds the higher value-add position, exporting complex goods (HS 87, 85, 84) versus Paraguay’s low-processed cereals (HS 10).

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

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

Check Detailed Paraguay-South Korea Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Paraguay’s trade with South Korea in Q1 2023 showed extreme volatility in exports, driven by erratic demand for cereals (HS 10), while imports of South Korean vehicles (HS 87) remained steady but subdued. Given the structural reliance on a single export commodity, Paraguay’s trade surplus is fragile—expect continued fluctuations in Q2, with potential downside risks if cereal prices soften or South Korean industrial demand slows. However, the resource-for-tech complementarity between the two nations ensures long-term trade viability, provided Paraguay diversifies its export base.

Strategic Moves

• Lock in Cereal Contracts: Paraguayan exporters should secure long-term supply agreements with South Korean buyers to stabilize revenue streams amid volatile price swings.
• Diversify Export Basket: Reduce mono-export risk by expanding into higher-value agri-products (e.g., processed foods, oils) to capture more of the value chain.
• Negotiate Tech Transfers: Paraguay should leverage its raw material exports to demand knowledge-sharing or joint ventures in South Korean automotive/industrial sectors, reducing dependency on finished imports.

Frequently Asked Questions

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

Paraguay's exports to South Korea surged with extreme YoY volatility, totaling $40.10M, while imports from South Korea were mixed, reaching $44.22M.

What are the top exports from Paraguay to South Korea?

Cereals (HS Code 10) dominate Paraguay's exports to South Korea, accounting for 94.18% of total shipments.

What does Paraguay import from South Korea?

Vehicles (HS Code 87) are the top import, making up 53.45% of Paraguay's purchases from South Korea.

What is the trade balance between Paraguay and South Korea?

Paraguay had a $4.12M trade deficit with South Korea in Q1 2023, as imports slightly exceeded exports.