Hiring locals is not a requirement. In fact, they hardly have any requirement apart from the fact that you need to spend 6 months in Chile.

That's a great move by the administrators of the scheme. Not because hiring locals is a problem (though it very well may be depending on what skillset you need and the language barrier) but because the bother of administrating such a scheme is a huge bother for the startups. They are right to put as few barriers in the way as possible.