(LG Electronics)

Fitness Candy, a fitness tech joint venture between South Korean tech giant LG Electronics and K-pop powerhouse SM Entertainment, said Thursday it will be liquidated some two years after its creation.

The decision came after its shareholders approved the dissolution of the company and the beginning of the liquidation process at a meeting held Monday, Fitness Candy said in a filing.

In 2022, LG Electronics, South Korea's leading home appliance maker, and SM Entertainment, the K-pop agency behind aespa and NCT Dream, launched Fitness Candy in a bid to tap into the fast-growing home fitness market.

LG Electronics and SM Entertainment hold a 51 and 49 percent stake, respectively, in the joint venture.

Fitness Candy had planned to introduce a differentiated home training service and expand into the global market by combining LG Electronics' information technology (IT) capabilities with SM Entertainment's content.

However, the launch of the service was delayed due to a series of replacements in top management, including the CEO, and a change in business model.

Moreover, the global home fitness market has already cooled rapidly since the end of the COVID-19 pandemic last year.

Fitness Candy posted 5.6 billion won ($4.1 million) in net deficit for last year. (Yonhap)