"That is over there."
Translation:그것은 저쪽에 있습니다.
I don't quite get the subtleties of way/direction/side/there. I tried using 저기에 here instead of 저쪽에 and got corrected. As far as I can tell, the latter implies more that it is over that way, whereas 기 represents the position. Did I understand that correctly? Are they interchangeable in this context?
I could be wrong (I have not practiced in a while...) but there are a couple of things incorrect with your sentence.
저기 refers to a place/space, more closely to "there" in English (not "this/these/that/those").
Also you are missing the subject of the sentence, in this case the 그것은. It stands for 그 as "far from the speaker, close to the listener", 것 as "a thing" and 은 as your subject particle (which could be suppressed I think).
I couldn't remember until I asked, but using 그것은 with 저쪽에 있습니다 only makes sense if 그것은 doesn't refer to something closer to the person you're speaking to but something that was previously mentioned. It's 'that' in the pronoun sense of the word. If you said 저것은 you wouldn't have to specify that it was over there, because you've already done it.