South Korean builders are expected to sign major construction deals with Iran timed with President Park Geun-hye's trip to the country early next month.

According to government and industry sources on Saturday, South Korean builders will sign memorandums of understanding(MOU) and provisional deals on building railways, dams, a petrochemical plant and a hospital worth as much as 20 trillion won during Park's trip to Iran.

Daelim Industrial Company is expected to sign a provisional agreement next month on a four-point-nine billion dollar railway project and a two billion dollar project on constructing a dam and a hydroelectric plant.

Hyundai Engineering is also expected to sign a framework agreement on a 12-phase South Pars gas field development project worth some three-point-six billion dollars.

In addition to the South Pars gas field, Hyundai is also working to clinch a deal on the construction of a power plant with an agency under Iran's Energy Ministry. It's scheduled to ink a Head of Agreement(HOA), which is more binding than an MOU, next month.