Seoul: South Korean steelmaker POSCO said Tuesday it will directly hire about 7,000 workers from its partner companies in its latest effort to address the country's long-standing subcontracting structure.

According to Yonhap News Agency, the decision, considered unconventional in the industry, involves directly employing partner company workers who support production operations at POSCO's steel plants in the southern cities of Pohang and Gwangyang. The company said about 7,000 on-site workers from partner firms are expected to be gradually transitioned into POSCO employees.

Steelmaking operations require facilities to run around the clock, and differences in job functions have led to a system in which both in-house employees and subcontracted workers operate together.