The 50-peso coins - worth about 10 cents (6p) - were issued in 2008, but no-one noticed the mistake until late last year.
Instead of C-H-I-L-E, the coins had C-H-I-I-E stamped on them.
The coins have since become collectors' items and the mint says it has no plans to take them out of circulation.
The BBC's Gideon Long, in the Chilean capital Santiago, says people have been hoarding the coins in the hope their value rises.
But the mistake has cost the mint's general manager, Gregorio Iniguez, and several other employees, their jobs.
(Chile mint boss pays the price of coin spelling howler. BBC News. February 13, 2010.)