It was developed and built in a joint project of government research institutes, universities and private companies that started in 1996, which aimed to reduce import dependence in high-speed rail technology.

When South Korea started its high-speed rail project, rolling stock and infrastructure was built in the framework of a technology transfer agreement between GEC-Alsthom (today Alstom), the main maker of French TGV high-speed trains, and South Korean companies.

[7] The technology transfer agreement did not provide for a complete control of manufacturing processes, and construction involved the import of parts.

[8] The project involved 10 government research agencies, 16 universities and 35 private companies, and employed over a thousand people.

[8] Due to the strong interdependencies of vehicle and infrastructure parameters in high-speed rail technology, the G7 program first focused on the compatibility with other components like track, catenary, signalling, and train control.

[8] The main element of the G7 project was the experimental high-speed train HSR-350x,[10] developed on the basis of the technology transferred from GEC-Alsthom.

[13] In these tests, the ride comfort, running safety and current collection of the vehicle were evaluated according to European standards.

[9] The original test program was officially concluded on December 27, 2007,[22] after the train ran more than 200,000 km (120,000 mi) at a cost of 46.9 billion won.

[10] The high-speed rail development project name G7 was an allusion to the Group of Seven, underlining South Korea's ambition to pull level with the most advanced industrialised nations in the field of technology.

[8] Once completed, for international presentation, the prototype was named HSR-350x, an acronym for High Speed Rail - 350 km/h (220 mph) experimental.

[26] After collecting and discussing proposals, one year later, on April 5, 2007, Chae argued that the name Hanvit (한빛),[27] which means a streak of intense light in Korean[10] should be used.

[9] The motors are supplied by traction converters with integrated gate-commutated thyristor (IGCT) rather than silicon-controlled rectifier (SCR) components as in the KTX-I.

[30] The redesigned bogies and suspensions were tested on the roller rig of Southwest Jiaotong University in China at simulated speeds of up to 402 km/h (250 mph).

[32] Already before the prototype was finished, in 2001, a study focusing on the needs of the less frequented Honam Line proposed a modified, modular train that allows shorter configurations by removing traction equipment from the extreme intermediate cars, while reducing top speed to 300 km/h (186 mph).

[32] In July 2005, the Ministry of Construction and Transportation earmarked 80 billion won for two 10-car commercial trains for 300 km/h (186 mph), destined for planned KTX services on the Jeolla Line from 2008.

Rotem, offering a commercial version of the HSR-350x, was chosen over Alstom as preferred bidder in December 2005,[34] and finalised the order for 10 trains on June 6, 2006.