Ulsan launches South Korea's first local tax delinquency management unit

Ulsan has become the first of South Korea's 17 metropolitan and provincial governments to launch a local revenue delinquency management unit. The unit operates under a system in which local governments hire fixed-term workers to investigate delinquent taxpayers and encourage payment, while also connecting those facing financial hardship or welfare crises with social services.

The city held an inaugural ceremony Thursday in the lobby of Ulsan City Hall, with representatives from its five districts and counties and officials from the Ministry of Interior and Safety's local fiscal and economic division in attendance.

The initiative gained momentum after the Cabinet emphasized the need for such units at a meeting in January. The Ministry of Interior and Safety plans to start with 2,000 workers this year and scale up to 6,000 annually from next year through 2029, for a total of 20,000 workers over four years.

Ulsan moved quickly to secure the necessary budget, allowing it to begin operations ahead of any other metropolitan government in the country. This year, the city will hire five to 10 fixed-term workers per district and county, bringing the total unit to 36 members. The city plans to evaluate the program after it concludes in November before expanding its scale next year.

City officials expect the unit to improve collection efficiency by consolidating management of both local tax and non-tax revenue arrears and tailoring enforcement activities accordingly. The program is also expected to deliver a dual benefit by creating jobs while supporting households in crisis.

"The delinquency management unit will go beyond simple collection to also provide welfare linkages," a city official said. "For chronic and habitual delinquents who deliberately avoid paying taxes despite having the means to do so, we will uphold tax justice through strict enforcement measures and administrative sanctions."