Ulsan Metropolitan City has drawn up a second supplementary budget of 198.9 billion won ($146 million) for 2026 to respond to worsening domestic and external economic conditions, including high prices and a strong dollar, and to stabilize the livelihoods of residents. The supplementary budget also marks the first time the city has entered the "1 trillion won ordinary grant tax era," securing a solid fiscal foundation to weather the crisis.
According to the city on Monday, the supplementary budget will increase Ulsan's total budget for this year from the initial 5.7895 trillion won to 5.9884 trillion won. The main funding sources include 81.4 billion won in ordinary grant tax and 260 million won in internal reserves.
Ulsan's ordinary grant tax, which stood at just 69.7 billion won in 2015, has grown nearly 15-fold to reach 1.0364 trillion won this year. Unlike general national subsidies, the ordinary grant tax can be used at the discretion of local governments. Surpassing the 1 trillion won mark gives Ulsan the fiscal strength to respond proactively to external changes without being swayed by them.
The supplementary budget is linked to the central government's "Middle East War Crisis Response Supplementary Budget" and focuses on easing the economic burden on citizens and filling gaps in government support. To preemptively respond to oil price uncertainty, the city increased fuel subsidies for the freight transport industry from 10 billion won to 15 billion won, and sharply expanded its share of temporary fuel cost support for the fishing industry from 20 million won to 910 million won, offsetting reduced government support.
Budgets were also allocated across various sectors for livelihood and pending projects. To promote public transportation use, the city earmarked funds for K-Pass refund support (5 billion won) and transit cards for senior citizens (110 million won). In the artificial intelligence (AI) sector, a future growth engine, the city will invest in hyperscale industrial AI research support (500 million won) and the development of an underwater data center demonstration model (380 million won).
The supplementary budget also includes detailed provisions to strengthen the welfare safety net and improve resident convenience. These include expanded daily and emergency care support (2.1 billion won), care assistance personnel support for social welfare facilities (170 million won), functional reinforcement of residential facilities for the disabled (100 million won), and community self-reliance support (40 million won).
To prepare for the climate crisis, the city will create "neighborhood shelters" in the form of smart bus stops (130 million won) and install cool roofs on facilities used by vulnerable populations (40 million won). For resident safety, the budget also covers pine wilt disease control for high-risk trees (700 million won) and the installation of safety facilities at Munsu Baseball Stadium (140 million won).
"With the arrival of the 1 trillion won ordinary grant tax era, Ulsan's capacity to overcome crises has grown significantly. We will actively use these funds to respond to the rapidly changing environment and revitalize the local economy," Ulsan Mayor Kim Doo-gyeom said. "We will work closely with the city council to ensure the budget proposal is processed swiftly."
The second supplementary budget proposal was submitted to the Ulsan Metropolitan Council on the 17th and is expected to be finalized within April after deliberation during the 263rd provisional session.
