The government signalled the start of this BOT (Build, Operate, Transfer) project with solicitation of private sector investment in the initial phase of a Kaohsiung Rapid Transit System-the Red and Orange Lines Construction Project.

The Kaohsiung Rapid Transit System will not only fulfill a transport function but will also provide the framework and catalyst for the development of the fabric, the economy, and the quality of life of the area, and for the promotion of community life, culture, and art.

On 10 May 2000, the Corporation was selected as the best applicant and concluded the relevant agreements and protocols with the Kaohsiung Municipal Government in August 2000.

The raising of the initial capital stock was completed on 19 December 2000 and an inaugural meeting of the stockholders was held on the same day.

Kaohsiung Rapid Transit Corporation obtained a company licence and was registered on 28 December 2000.