Ecuadorian President Rafael Correa will visit Korea in the second week of September and meet with his Korean counterpart Lee Myung-bak. Along with Venezuela, Ecuador is a major oil producer in Latin America, and Correa is expected to discuss Korean participation in the construction of a US$12.5 billion oil refinery in the coastal province of Manabi jointly operated by Ecuador and Venezuela.

"Korean and Japanese companies are competing to win the construction project in Manabi," said a diplomatic source. "Ecuador wants to benchmark Korea's economic development model and seeks Korean investments and development input."

If Korea wins the order, it would be its biggest overseas oil plant construction deal. Correa is visiting Japan before arriving in Korea. In March, Korea's SK Engineering and Construction clinched a $260 million deal from Ecuador to design the Manabi plant.

Ruling Grand National Party lawmaker Lee Sang-deuk traveled to Ecuador in June as presidential envoy and tried to persuade Correa to help Korean firms win the construction project. Seoul has apparently decided to provide $3 million in aid to Ecuador when it asked Korea to build a solar power plant in the Galapagos Islands.