Seoul Metro, which operates Seoul subway lines 1 through 4, will also run a light railway system connecting Busan and Gimhae.
The metro company announced Monday that it will sign a contract with Busan Gimhae Light Rail Transit (BGL) next week. Seoul Metro is the biggest urban transit system operator in the nation.
BGL will operate two-carriage unmanned light trains on the 23.9-kilometer-long line with 21 stations.
Construction began in 2006 and it will start operation in April 2011.
Seoul Metro will establish a subsidiary with Busan Transportation Corporation and Gimhae City to co-operate the light rail transit.
The Seoul-based subway operator will also be in charge of constructing the Gimpo light rail transit system connecting Gimpo International Airport and Seoul.
Kim Sang-Don, president of Seoul Metro, said the company aims to transform into a global urban transit engineering firm based on its 35-year experience and know-how.
Seoul Metro is promoting overseas expansion as well. It signed an MOU with Thailand to build subway lines in Bangkok in October 2007 and another with Vietnam to construct a fifth subway line in Hanoi May 2008.