KVM is VPS, it's virtualization.
Virtual Dedicated Server (or VDS) it's how they call it, but the sense of it hot changed, it still VPS.
Yes, it is an economic hosting for your request. Usually, it's cost ~3x more. (Around 70-80$ for trash VPS), and I don't talk about real dedi servers.
South America also has very poor network route inside continent, almost all connected to very cheap and trash Tier1 providers which can route your traffic from BR to Chile for example through Europe, and not directly. It's not an EU / US hosting which cost in 10x times less and has much better performance, and nicer features/price than outside US/EU. Say thx to a monopoly on foreign markets.