Paraguay - South Korea Trade 2023 Q2: Widening Deficit

Key Market Takeaways: Paraguay - South Korea Trade

The bilateral trade relationship between Paraguay and South Korea is marked by a widening trade deficit and volatile export performance in Q2 2023.

• Economic Pulse: Paraguay posted a $43.82M trade deficit with South Korea, driven by $45.00M in imports (consistently declining YoY) versus negligible exports ($1.18M).
• Exchange Structure: Paraguay - South Korea trade statistics reveal a resource-for-tech dynamic—Paraguay supplies meat (49.55% of exports) while importing vehicles (49.51% of imports) and high-tech machinery.
• Strategic Interdependence: Highly complementary but imbalanced: South Korea dominates value chains with advanced goods, while Paraguay remains a niche agricultural supplier.

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

Paraguay-South Korea Trade Trend in Q2 2023

Paraguay Export Performance: Shipments to South Korea

• Total Volume: $1.18M in Q2 2023.
• Growth Trend & Context:
  • YoY swings were erratic: May saw a 98.73% surge, but June plummeted -52.14%. No clear directional trend.
  • No relevant trade news to explain volatility.
• Key Volatility: April recorded a -42.0% MoM drop, the sharpest quarterly decline. May’s MoM rebound (+10.05%) was short-lived.

Paraguay Import Performance: Sourcing from South Korea

• Total Volume: $45.00M in Q2 2023.
• Growth Trend & Context:
  • YoY consistently negative: April (-23.36%), May (-8.4%), June (-10.06%), signaling sustained demand contraction.
  • No news to contextualize the slump.
• Key Volatility: June posted the highest monthly import value ($17.42M) with a 17.44% MoM jump, offsetting April’s -16.46% dip.

Paraguay - South Korea Trade Balance & Market Dynamics

• Net Position: Trade deficit of $43.82M (Imports $45.00M > Exports $1.18M).
• Relationship Status: Paraguay remains heavily import-reliant on South Korea, with exports negligible by comparison. The deficit widened YoY due to plunging export performance.

Paraguay Import Trend from South Korea 2023 Q2 (Source: yTrade)**

Paraguay Export Trend to South Korea 2023 Q2 (Source: yTrade)**

Get Historical Paraguay South Korea Trade Records

Paraguay-South Korea Top Trading Products in Q2 2023

Paraguay Export Profile: What Does Paraguay Sell to South Korea

• Top Commodity: Rank #1 export is HS 02 (Meat and edible meat offal) at 49.55% of total exports to South Korea.
• Demand Driver: South Korea imports these primarily for its consumer market, indicating strong demand for Paraguayan meat products.
• Concentration: Trade is highly concentrated, with the top 3 categories (HS 02, 76, 21) accounting for 96.01% of total exports.

Paraguay Import Profile: What Does Paraguay Buy from South Korea

• Top Commodity: Rank #1 import is HS 87 (Vehicles) at 49.51% of total imports from South Korea.
• Dependency Nature: Paraguay relies heavily on South Korea for high-tech machinery and manufactured goods, particularly vehicles and electronics (HS 85, 84).

Paraguay - South Korea Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Paraguay exports raw materials (meat, aluminum) while importing high-value manufactured goods (vehicles, machinery).
• Value Chain Position: South Korea holds the higher value-add position, supplying complex industrial products, while Paraguay provides agricultural and basic industrial inputs.

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 is likely to remain volatile in the near term, with exports struggling to gain momentum while imports continue to dominate. The erratic YoY swings in exports, coupled with South Korea’s sustained demand contraction for Paraguayan goods, suggest no immediate rebound. However, the strong performance of HS 02 (meat) indicates a niche opportunity for growth if market access is stabilized. The trade deficit will persist unless Paraguay diversifies its export basket or negotiates better terms for high-value agricultural products.

Strategic Moves

• Expand Meat Market Access: Paraguayan exporters should aggressively target South Korea’s consumer meat demand by securing long-term contracts and complying with stringent quality standards to lock in stable revenue streams.
• Reduce Tech Dependency: Paraguayan importers must diversify sourcing for high-tech goods (HS 87, 85, 84) to mitigate overreliance on South Korea, exploring alternatives in Southeast Asia or Europe.
• Leverage Complementary Strengths: Trade negotiators should push for bilateral agreements that incentivize South Korean investment in Paraguay’s agro-processing sector, upgrading local value chains to reduce the raw-material export trap.

Frequently Asked Questions

How did Paraguay - South Korea trade perform in 2023 Q2?

Paraguay's exports to South Korea totaled $1.18M in Q2 2023, with erratic YoY swings, while imports from South Korea reached $45.00M, showing consistent YoY declines.

What are the top exports from Paraguay to South Korea?

The top export is HS 02 (Meat and edible meat offal), accounting for 49.55% of total exports, followed by HS 76 and HS 21, making up 96.01% combined.

What does Paraguay import from South Korea?

The top import is HS 87 (Vehicles), representing 49.51% of total imports, alongside high-tech machinery and electronics (HS 85, 84).

What is the trade balance between Paraguay and South Korea?

Paraguay recorded a trade deficit of $43.82M in Q2 2023, with imports ($45.00M) far exceeding exports ($1.18M), widening YoY due to plunging export performance.