Paraguay - South Korea Trade 2024 Q2: Deficit & Tech Dependence

Key Market Takeaways: Paraguay - South Korea Trade

The bilateral trade relationship between Paraguay and South Korea shows volatile export growth and surging imports in Q2 2024.

• Deficit Dominance: Paraguay runs a $60.82M trade deficit, with imports from South Korea ($62.09M) dwarfing exports ($1.27M).
• Resource-for-Tech Trade: Paraguay - South Korea trade statistics reveal a raw materials-for-manufactured goods exchange, with copper (69% of exports) swapped for vehicles (48% of imports).
• Asymmetrical Dependence: Paraguay relies heavily on South Korean tech (automotive, machinery), while its export base remains narrowly concentrated.

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

Paraguay-South Korea Trade Trend in Q2 2024

Paraguay Export Performance: Shipments to South Korea

• Total Volume: $1.27M in Q2 2024.
• Growth Trend & Context:
  • YoY swings were volatile: April (-33.14%), May (+112.66%), June (-30.11%). No clear directional trend.
• Key Volatility: May saw a 106.61% MoM surge, while June dropped sharply (-63.83% MoM).

Paraguay Import Performance: Sourcing from South Korea

• Total Volume: $62.09M in Q2 2024.
• Growth Trend & Context:
  • YoY growth remained strong: +32.14% (April), +26.57% (May), +51.96% (June).
• Key Volatility: June imports spiked 41% MoM, marking the highest monthly volume ($26.47M).

Paraguay - South Korea Trade Balance & Market Dynamics

• Net Position: Trade deficit of $60.82M (Imports $62.09M > Exports $1.27M).
• Relationship Status: Paraguay is heavily dependent on South Korean imports, with exports negligible by comparison.

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

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

Get Historical Paraguay South Korea Trade Records

Paraguay-South Korea Top Trading Products in Q2 2024

Paraguay Export Profile: What Does Paraguay Sell to South Korea

• Top Commodity: HS Code 74 (Copper and articles thereof) dominates exports, accounting for 69.31% of total value.
• Demand Driver: South Korea likely imports these raw materials for industrial processing, given its heavy manufacturing base.
• Concentration: Extreme reliance on a single category (copper), with the top export representing nearly 70% of total exports.

Paraguay Import Profile: What Does Paraguay Buy from South Korea

• Top Commodity: HS Code 87 (Vehicles and parts) leads imports, capturing 48.20% of total value.
• Dependency Nature: Critical technology dependency, as South Korea supplies high-value automotive components and finished vehicles.

Paraguay - South Korea Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Paraguay exports raw materials (copper) and imports advanced manufactured goods (vehicles, machinery).
• Value Chain Position: South Korea holds the higher value-add position, supplying complex products (automotive, electronics) while Paraguay provides base commodities.

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

The Paraguay-South Korea trade relationship is expected to remain heavily skewed toward imports, with South Korean automotive and machinery exports continuing to dominate. Paraguay’s copper exports may stabilize but will likely remain volatile due to fluctuating demand and commodity price swings. Given South Korea’s strong industrial base and Paraguay’s reliance on high-value imports, the trade deficit is projected to widen further unless Paraguay diversifies its export basket. Traders should prepare for sustained import-driven growth, with potential supply chain disruptions as a key risk.

Strategic Moves

• Diversify Export Offerings: Paraguayan exporters must reduce dependence on copper by identifying and developing secondary high-demand commodities, such as agricultural products or processed minerals, to capture a larger share of South Korea’s import market.
• Secure Long-Term Supply Contracts: Importers of South Korean vehicles and machinery should negotiate fixed-price agreements to mitigate cost volatility, especially as June’s 41% MoM import spike indicates potential supply shortages or price surges.
• Leverage Bilateral Investment: Paraguayan policymakers should actively seek South Korean investment in local manufacturing to reduce import dependency, particularly in automotive components, where technology transfer could strengthen domestic industry.

Frequently Asked Questions

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

Paraguay's exports to South Korea totaled $1.27M in Q2 2024, with volatile YoY swings, while imports surged 32.14% YoY to $62.09M.

What are the top exports from Paraguay to South Korea?

Copper and articles thereof (HS Code 74) dominate Paraguay's exports, accounting for 69.31% of total value.

What does Paraguay import from South Korea?

Vehicles and parts (HS Code 87) lead Paraguay's imports, representing 48.20% of total value.

What is the trade balance between Paraguay and South Korea?

Paraguay recorded a trade deficit of $60.82M in Q2 2024, driven by significantly higher imports than exports.