Interior and Security Minister Jorge Burgos says the victims were 18-year-old Exequiel Borbaran and 25-year-old Diego Guzman.
He says that police had no role in their deaths and that an investigation is underway.
Students held protests across Chile yesterday demanding education reform.
Officials have not determined whether the victims were part of the Valparaiso demonstration, only saying they died near the protest site. Police said one was killed while spray painting a wall as hooded protesters clashed with police. Witnesses told Channel 13 they heard gunshots after a man reproached Borbaran for putting up a poster on a wall.
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