LG-SM venture Fitness Candy to shutter on lack of gains in market
이 글자크기로 변경됩니다.
(예시) 가장 빠른 뉴스가 있고 다양한 정보, 쌍방향 소통이 숨쉬는 다음뉴스를 만나보세요. 다음뉴스는 국내외 주요이슈와 실시간 속보, 문화생활 및 다양한 분야의 뉴스를 입체적으로 전달하고 있습니다.
Fitness Candy, a digital health care venture established jointly by SM Entertainment and LG Electronics, will close its doors in two years after failing to make a breakthrough in the home fitness market.
The company announced in an electronic disclosure on Thursday that it held a shareholders' meeting on Monday to dissolve the company and initiate the liquidation process.
LG and SM established Fitness Candy in June 2022 with the aim of establishing a foothold in the rapidly expanding home fitness market, driven by the surge in demand during the Covid-19 pandemic.
LG Electronics owned 51 percent of the joint venture and rest was held by SM Entertainment.
The company’s initial business model planned to rely on an app with subscription-based home training services that utilized smartphones and smart TVs and could integrate data from smart bands, cameras and other exercise machines.
The company even had ambitions to expand overseas with distinctive services combining LG Electronics’ IT capabilities and SM Entertainment's music, dance and associated artists.
However, the launch of the app was delayed as the company's array of C-suite executives was shuffled.
Fitness Candy released a health care app known as Init in July 2023, which rewarded users when they cleared exercise missions. However, the service failed to turn a profit as the home fitness market retracted after the pandemic.
Fitness Candy logged an annual net loss of 3.29 billion won ($2.39 million) in 2022, which only widened the following the year to 5.67 billion won.
BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]
Copyright © 코리아중앙데일리. 무단전재 및 재배포 금지.
- Yellow dust blankets Korea as warnings to 'stay indoors' are issued
- BTS pop-up store to open in Seoul's Seongsu-dong area
- Seoul Station train collision involving KTX, 287 passengers transferred
- ‘Our best performance’: Le Sserafim’s Sakura defends divisive Coachella debut
- Festival with Japanese adult entertainers relocates again after Seoul gov't warns venue
- Younger Koreans more willing to have children, survey says
- Most foreigners in Korea earn 2 to 3 million won a month, report says
- Dogs at Korean election polling stations — in pictures
- Finance chiefs of Korea, U.S., Japan recognize concerns over slumping currencies
- BabyMonster steps into YG's Blackpink vacuum