The unnamed cute ute will compete with the likes of Toyota's upcoming C-HR, Mazda's CX-3, Honda's HR-V and Chevy's Trax.
It will slot below the compact Sportage, which has grown in size and price in recent years.
The Kia is expected to share a platform with Hyundai's upcoming and as-yet-unnamed subcompact crossover.
Its styling is expected to echo that of the Provo concept Kia showed in Geneva in 2013.
The prototype shown in spy photos appears to have a longish hood, stubby tail and limited cargo space -- a profile similar to the previous-generation Sportage.
This bite-sized Kia should debut late next year and go on sale as a 2018 model.