"Business Closure Considering Profit and Future Growth Potential"
Fitness Candy, a home fitness joint venture between LG Electronics and SM Entertainment, has ceased operations after more than two years and has begun liquidation procedures.
Fitness Candy announced on the 18th that it decided to proceed with corporate dissolution and liquidation procedures at a shareholders' meeting held on the 15th.
LG Electronics and SM Entertainment established Fitness Candy in June 2022 to enter the home fitness market, which was growing during the spread of COVID-19. LG Electronics held 51% of the company's shares, while SM Entertainment held 49%.
At the time of Fitness Candy's establishment, both companies announced plans to launch a dedicated application that could be used on various devices such as smartphones and smart TVs, and to offer diverse fitness programs. They also revealed plans to combine their capabilities to enter the global market.
However, the company faced difficulties such as successive changes in top management, including the CEO, and changes in the business model. Delays in investment timing and market entry caused losses to increase, ultimately leading to the decision to liquidate the business.
LG Electronics stated, "Considering the profit structure and future growth potential, we decided to terminate the business."
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