LG Electronics and SM Entertainment form Fitness Candy

Fitness Candy, 51 percent owned by LG Electronics and the rest by SM, will introduce an app with subscription-based healthcare content services by September at the earliest, according to the companies.

From left: Fitness Candy CEO Shim Woo-taek, SM Entertainment co-CEO Lee Sung-su, LG Electronics CEO Cho Joo-wan, SM Entertainment co-CEO Tak Young-jun, Fitness Candy Senior Executive Vice President Kim Bee-oh [LG ELECTRONICS]

LG Electronics and SM Entertainment established a joint venture on digital healthcare.

Fitness Candy, 51 percent owned by LG Electronics and the rest by SM, will introduce an app with subscription-based healthcare content services by September at the earliest, according to the companies.

The two companies held an opening for Fitness Candy at the Conrad Seoul in Yeouido, western Seoul, with LG Electronics CEO Cho Joo-wan and SM Entertainment co-CEOs Lee Sung-su and Tak Young-jun in attendance.

“The target number of paid subscribers is 50,000 next year, with a target annual revenue of 10 billion won [$7.7 million],” said Kim Bee-oh, Fitness Candy senior executive vice president, during the event.

LG Electronics will develop the app and plans to further expand the business to electronic healthcare devices. SM Entertainment will make content, which will involve K-pop content. The service is going to be priced at around 20,000 to 30,000 won per month. Fitness Candy is also expecting overseas expansion in the future, but did not give a time frame.

“While the previous home appliance business has been focusing on the functionality and performances, LG Electronics will now lead the smart home appliance paradigm centering on consumer experience,” Cho said.

Lee said that “this will be an opportunity to contribute to the global fitness and healthcare industry by combining SM Entertainment’s music, dance and artist-related content and LG Electronics’ IT technologies.”

Fitness Candy ambassadors — model Han Hye-jin, dancer Aiki, and actress Choi Yeo-jin — and athletes, including triathlete Heo Min-ho, Olympic gold taekwondo practitioner Lee Dae-hoon and silver medal speed skater Lee Yu-bin, also attended the event.

The healthcare sector, which has been boosted by the pandemic and social distancing measures, was among the new business areas picked by LG Electronics for its growth potential after the company exited from smartphone and solar energy businesses.

The electronics maker added healthcare devices to business objectives in its corporate charter in March, heralding an expansion into fresh fields beyond home appliances.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]