The vehicle will be developed jointly between the two vehicle manufacturers while the state-run power company develops charging systems and infrastructure.
Last month Hyundai unveiled a plug-in version of its i10 model at the Frankfurt Auto Show. The i10 EV is now the most likely candidate for the newly arranged joint venture.
The i10 EV uses a 16 kWh lithium-ion battery pack and is capable of 135km/h while traveling up to 160km on a single charge.
Korean Electric Power Company has also agreed to help with the distribution of the car upon release by likely bundling the EV with its charging system.
A production version of the i10 EV is expected in early 2011.