A person who hails from Chile, a country located in South America, BUT they are not Spanish, they are from Chile (Chilean).
Even though a person may speak spanish it doesn't mean that they are spanish. If a person from Argentina spoke spanish, they are considered Argentinian AND NOT SPANISH!!
Some ppl need to learn that just because you may speak the language, and look the part, you ARE Not Spanish. Its like a white guy going to Africa (not south) and saying he's african because he can speak African, jeez.
in Brazil, they speak Portuguese BUT they are Brazilian and Not Portuguese. Same thing applies to a person from Chile, they can speak spanish and they look spanish but deep down inside they are chilean.