Actually, this alone did not do it for me. You have to be more radical than this.
1. On your watch, switch off BT.
2. On your phone, remove the pairing between the phone and the watch.
3. On your phone, delete cache and data of the Galaxy Wearable app.
4. On your watch, select "Pair with new phone" option. This wipes all user data on the watch in the process, and activates BT again. It should also cause your phone to launch the Galaxy Wearable app.
5. Follow the onscreen instructions.
6. Restore your Backup. If you didn't have one, make sure to make one in the future :-).
I know this is very radical, but I spent a whole evening trying all possible combinations, and this was the only one that worked.
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