Hyundai/Kia Motor Company will introduce new Kappa 1.6L GDI engine dedicated for hybrid vehicles, starting production for Korean market in the early 2016. It has achieved the challenging level of 40% maximum thermal efficiency as a gasoline engine. Even though it has the highest fuel efficiency, it can generate sufficient power to provide vehicle's dynamic driving performance.The new Kappa 1.6L GDI engine has been developed focusing on the fuel efficiency. To maximize fuel efficiency, compact combustion chamber is designed with 1.35 stroke-bore ratio. And other key technologies such as Atkinson cycle with high compression ratio, cooled EGR system with high energy ignition coil and high tumble intake ports are applied.The knock has been suppressed significantly to improve fuel efficiency by split cooling system with two thermostats and block insert, the piston cooling jet and the sodium-filled exhaust valve.Friction of Kappa 1.6GDI engine is minimized by the two-stage pressure control oil pump, low viscosity engine oil and low friction coating on moving parts.Also the OCV integrated CVVT has the faster response speed to cover the wider phasing angle of CVVT in Atkinson cycle.Also, to meet SULEV emission regulation, the spray pattern of the laser drilled-injector is optimized for the combustion chamber consisting of high tumble and flat piston with 200 bar fuel pressure system.