This is what I did after all:
<insert id="insert" parameterType="BookType">
<selectKey resultType="Integer" keyProperty="bookTypeId" order="BEFORE">
<if test="bookTypeId == null">SELECT nextval('seq_book_type')</if>
<if test="bookTypeId != null">SELECT #{bookTypeId}</if>
</selectKey>
INSERT INTO book_type(
book_type_id,
book_type_desc
)
VALUES(
#{bookTypeId},
#{bookTypeDesc}
)
</insert>
It works like a charm. Please anyone with myBatis experience, let me know if there is a better way than this.