The most common and most likely answer to this crossword clue is the 5 letter word CHILE
I've seen this crossword clue in The Sunday Telegraph
C
H
I
L
E
More clues leading to the result CHILE
- Country that’s cold, by all accounts
- Country a bit on the cold side, we hear
- Companion brought to French island nation
- Talk about cold nation!
- Uncomfortably cold, reportedly, in a South American country
- It’s cold, we hear, in the country
- Country somewhat Arctic, did you say?
- Country kid changed in the end
- Distant sound in the country
- The country’s cold, they say
Buddy explains!

The straight part
We know that "Land in South America" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case land in south america = chile.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does CHILE mean?
CHILE noun- The pungent, spicy fresh or dried fruit of any of several cultivated varieties of capsicum peppers, used in cooking.
- Powdered chili pepper, used as a spice or flavouring in cooking.
- (Indian Chinese cuisine) a spicy stew of chicken or paneer, capsicum and onion, eaten as an appetizer.
- A dish made with chili peppers and other ingredients, such as beans and beef.
- (Cincinnati) Cincinnati chili.
- A person who has not yet reached adulthood, whether natural (puberty), cultural (initiation), or legal (majority)
- (specifically) A female child, a girl.
- (with possessive) One's direct descendant by birth, regardless of age; a son or daughter.
- The thirteenth Lenormand card.
- A figurative offspring, particularly:
- A child of noble birth.
- The cognomen given to the oldest son prior to his taking his father's title.