Paraguay - South Korea Trade 2023 Q4: Widening Deficit

Key Market Takeaways: Paraguay - South Korea Trade

The bilateral trade relationship between Paraguay and South Korea showed volatile growth with a widening deficit in Q4 2023.

• Economic Pulse: Paraguay posted a $7.25M trade deficit ($52.72M imports vs. $45.47M exports), despite a December export surge (+115.91% YoY).
• Exchange Structure: Paraguay - South Korea trade statistics reveal a resource-for-tech model: cereals (98.38% of exports) for vehicles (50.41% of imports).
• Strategic Interdependence: Highly complementary but imbalanced—South Korea dominates high-value manufacturing while Paraguay relies on bulk commodities.

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

Paraguay-South Korea Trade Trend in Q4 2023

Paraguay Export Performance: Shipments to South Korea

• Total Volume: $45.47M in Q4 2023.
• Growth Trend & Context:
  • YoY swings were volatile: +39.85% in October, -26.57% in November, then a sharp rebound (+115.91%) in December.
  • No news to contextualize these fluctuations.
• Key Volatility: November saw a -46.87% MoM drop, while December surged +92.9% MoM.

Paraguay Import Performance: Sourcing from South Korea

• Total Volume: $52.72M in Q4 2023.
• Growth Trend & Context:
  • YoY growth was strong (+20.26% in October, +49.95% in November) but moderated to +35.94% in December.
• Key Volatility: November peaked at $20.04M (+18.61% MoM), while December fell -21.28% MoM.

Paraguay - South Korea Trade Balance & Market Dynamics

• Net Position: Trade deficit of $7.25M (Imports $52.72M > Exports $45.47M).
• Relationship Status: Paraguay remains a net importer from South Korea, though export growth in December suggests potential rebalancing.

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

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

Get Historical Paraguay South Korea Trade Records

Paraguay-South Korea Top Trading Products in Q4 2023

Paraguay Export Profile: What Does Paraguay Sell to South Korea

• Top Commodity: HS Code 10 (Cereals) dominates with 98.38% share.
• Demand Driver: South Korea imports these for food security and industrial processing (e.g., animal feed, food manufacturing).
• Concentration: Extreme reliance on one category (98.38%), indicating minimal export diversification.

Paraguay Import Profile: What Does Paraguay Buy from South Korea

• Top Commodity: HS Code 87 (Vehicles) leads at 50.41% share.
• Dependency Nature: Critical technology dependency, as South Korea supplies high-value automotive products.

Paraguay - South Korea Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Paraguay exports raw agricultural goods (Cereals) in exchange for advanced manufactured goods (Vehicles, Machinery).
• Value Chain Position: South Korea holds the higher value-add position, exporting complex products (HS 87, 85, 84) versus Paraguay’s low-value bulk commodities (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 is expected to remain volatile in the near term, driven by fluctuating agricultural exports and sustained demand for Korean high-tech imports. The December export surge (115.91% YoY) suggests potential for rebalancing, but Paraguay’s heavy reliance on cereals (98.38% of exports) leaves it vulnerable to price swings and supply shocks. Meanwhile, South Korea’s automotive and machinery exports will likely maintain dominance, reinforcing Paraguay’s trade deficit unless diversification accelerates.

Strategic Moves

• Diversify Export Basket: Paraguayan exporters must reduce reliance on cereals by exploring secondary agricultural products (e.g., processed foods, organic goods) to mitigate volatility and capture higher margins.
• Lock In Long-Term Contracts: Given South Korea’s stable demand for raw materials, Paraguayan suppliers should secure multi-year agreements to stabilize revenue streams and hedge against market swings.
• Boost Value-Added Exports: Paraguay should incentivize local processing of cereals (e.g., flour, animal feed) to move up the value chain and reduce the tech-resource trade imbalance with South Korea.

Frequently Asked Questions

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

Paraguay's exports to South Korea totaled $45.47M, with volatile YoY growth, while imports reached $52.72M, showing strong but moderating growth.

What are the top exports from Paraguay to South Korea?

Cereals (HS Code 10) dominate Paraguay's exports to South Korea, accounting for 98.38% of total shipments.

What does Paraguay import from South Korea?

Vehicles (HS Code 87) are the top import, making up 50.41% of Paraguay's purchases from South Korea.

What is the trade balance between Paraguay and South Korea?

Paraguay recorded a trade deficit of $7.25M, with imports exceeding exports, though December's export surge hints at potential rebalancing.