Ulsan Metropolitan City has strengthened its local fiscal capacity through responsible tax enforcement and strategic financial management, achieving tangible results in revenue generation and fiscal stability. The city announced that it secured an additional 75.5 billion won in local revenue last year by intensifying delinquent tax collection efforts and optimizing the management of public funds. The outcome highlights Ulsan’s commitment to building a sustainable and resilient local finance system.
According to the city, 30.2 billion won in delinquent local taxes was collected through strengthened enforcement measures. This represents a 37.7 percent collection rate, significantly higher than the national average of 32.9 percent. Ulsan attributed the strong performance to firm action against habitual and high-value delinquent taxpayers, combined with enhanced on-site enforcement strategies.
The city operated intensive delinquent tax cleanup periods in both the first and second halves of the year, focusing on illegally registered vehicles and repeat offenders. Ulsan also implemented a vehicle seizure system linked to public parking facilities, enabling real-time identification and enforcement against tax-delinquent vehicles. These measures increased collection efficiency while reinforcing compliance awareness among taxpayers.
Strategic financial management further contributed to Ulsan’s fiscal performance. The city recorded 22.7 billion won in interest income from public fund deposits, the highest level in its history. Over the past five years, interest income has shown a steady upward trend, rising from 3.9 billion won in 2021, to 9.5 billion won in 2022, 14.8 billion won in 2023, 22.3 billion won in 2024, and reaching a record high last year. This growth reflects systematic improvements in public fund management.
Ulsan adjusted deposit timing based on interest rate movements and expenditure schedules, maintaining only the minimum necessary liquidity for payments while efficiently investing surplus funds. Despite economic uncertainty and a declining benchmark interest rate environment, the city minimized fiscal risk and maximized returns through prudent cash flow management.
 [The Korean Today] Exterior View of Ulsan City Hall © By Soyoung Jeong |
Corporate tax audits also played a key role in expanding local revenue. Through corporate tax investigations, Ulsan recovered 22.6 billion won in additional taxes, including acquisition taxes. Major cases involved unreported asset acquisitions, failure to use tax-exempt properties as intended, delayed demolition of obsolete housing, and unreported share acquisitions by major shareholders. The city analyzed recurring violations to improve administrative effectiveness.
Rather than relying solely on enforcement and penalties, Ulsan plans to strengthen preventive tax administration. Customized practical tax guides will be distributed to local corporations to reduce repeat violations and encourage voluntary compliance. This approach aims to balance fairness, transparency, and administrative efficiency while minimizing unnecessary burdens on businesses.
Looking ahead, the city will continue to impose strict administrative measures on habitual and high-value delinquent taxpayers, including travel restrictions, public disclosure of delinquency, asset seizures, and on-site inspections. At the same time, Ulsan intends to deepen cooperation with its designated city bank to further enhance the efficiency and transparency of public fund management.
Fiscal experts note that Ulsan’s achievements could serve as a model for other local governments. The combination of responsible tax collection and strategic financial operations helps reduce dependence on central government funding and strengthens local fiscal autonomy. Over the long term, such stability enhances policy execution capacity and supports sustainable regional economic development.
Ulsan stated that it will continue to prioritize fiscal soundness while minimizing the burden on citizens. Revenue secured through responsible tax enforcement and strategic fund management will be reinvested into policies aimed at revitalizing the local economy and improving residents’ quality of life.
[ By Soyoung Jeong | Ulsan Gangbuk | ulsangangbuk@thekoreantoday.com ]
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