"KEPCO had asked the government to delay the IPO to avoid big losses from the sale because the initial offer price was estimated at a lower level than the unit's actual book value. So, we've delayed the IPO to take more time, hoping the market conditions turn favourable by then," said South Korean Ministry of Commerce, Industry and Energy spokesperson Kang Ho-sung.

The sale had been seen as part of a broader privatisation drive, with Seoul planning to sell five thermal power-generating units of the state-controlled power monopoly KEPCO. However, such plans have been hit investor disinterest and labour union resistance to the plan.

KEPCO supplies the country with around 95% of its electricity demand.