Ulsan City Secures Record High Ordinary Local Allocation Tax of 924.3 Billion KRW... Seed Money for Autonomous Projects

Nationwide 0.6%, Ulsan City 4.1% Increase

Market, Officials, and National Assembly Members All Participated

Ulsan City has secured a record-high ordinary local allocation tax of 924.3 billion KRW from the national government this year.

Ulsan City announced on the 3rd that it received 35.7 billion KRW (4.1%) more than the 888.6 billion KRW allocated in 2023, achieving a performance far exceeding the national average of 0.6%.

Last year, the ordinary local allocation tax distributed to local governments was 59.4757 trillion KRW, and in 2024, it increased by 368.2 billion KRW (0.6%) to 59.8439 trillion KRW.

Accordingly, combining the already secured national budget of 2.5908 trillion KRW for this year with the ordinary local allocation tax of 924.3 billion KRW, Ulsan City's 2024 national budget reaches a record high of 3.5151 trillion KRW.

The role of Mayor Kim Du-gyeom of Ulsan is cited as a key factor in securing the largest-ever ordinary local allocation tax despite the government's tight fiscal conditions. Calling himself Ulsan’s first sales representative, Mayor Kim Du-gyeom has continuously worked to secure the ordinary local allocation tax since taking office by actively appealing to the Ministry of the Interior and Safety for increased administrative demand and allocation tax, as well as proposing improvements to the calculation indicators.

Ulsan City plans to flexibly promote key projects of the 8th term of the elected government, such as urban railway (tram) construction and the Nongso~Gangdong road development, by sufficiently securing the ordinary local allocation tax used as general funds.

Mayor Kim Du-gyeom of Ulsan said, “Although it was difficult to secure the allocation tax due to the government’s tight budget formulation policy, great results were achieved thanks to the efforts of many relevant department staff and local members of the National Assembly.”

The ordinary local allocation tax is a fund that the national government allocates to local governments experiencing fiscal deficits, amounting to 97% of 19.24% of the total domestic tax revenue. Since its use is not designated, it is an important resource that can be autonomously invested in city projects.

In the case of last year, Ulsan initially secured 996 billion KRW through the ordinary local allocation tax, but following the government's national tax revenue re-estimation in September, the ordinary local allocation tax for all cities and provinces was uniformly adjusted by 16%, reducing it to 837.2 billion KRW. Subsequently, adding an additional 51.4 billion KRW allocated by the Ministry of the Interior and Safety in mid-December, the total ordinary local allocation tax for last year was 888.6 billion KRW.

Ulsan City Hall.

This content was produced with the assistance of AI translation services.