The Wanderers made a dream start by going ahead inside a minute but defensive howlers the like of which they rarely commit in the A-League were severely punished by the gifted team from the Korea Republic.
The A-League premier played its part in an entertaining match in Group H but Ulsan's experience and superior skills won the day.
A healthy crowd came to watch the Wanderers in their first ever match in Asia and a buzz of expectation surrounded the ground.
But no one could have imagined the explosive opening to the Group H match.
The Wanderers had a dream start when after just 42 seconds Japanese wizard Shinji Ono flicked a delightful ball to Brendon Santalab and the striker made enough space for himself to hit a glorious volley that nestled in the corner of Ulsan's net.
Ulsan's players did not let the early setback rattle them and after 11 minutes a header from big striker Kim Shin Wook that just missed the post served notice to the Wanderers that this was going to be no walk in the park.
At the other end Nikolai Topor-Stanley rose beautifully to connect with a free kick from Ono but his header went disappointingly wide.
Ulsan made some inroads into the Wanderers' penalty area with some eye-catching play and goalkeeper Ante Covic had to be alert to block an effort from Masuda Chikashi at the expense of a corner.
Ulsan deservedly drew level on 34 minutes when Shin Wook got hold of a loose ball after some shoddy defending and he found the net with a low placed shot to Covic's left.
Santalab had an opportunity to restore the Wanderers' lead when he shot straight at the goalkeeper after being served by Ono.
Ulsan made the Wanderers pay for their miss by taking the lead on 42 minutes with a crisp shot from Ko Chang Hyun that rolled into the far corner of Covic's net.
Again the Wanderers were found wanting in defence.
The Wanderers pushed more men forward in the second half in a bid to get back into the game.
Mark Bridge was very unlucky with a rising shot that missed the bar after being set up by Santalab.
Ulsan was on the back foot but in an isolated attack striker Rafinha's shot grazed the post although Covic would say he had it covered.
The Wanderers' cause was severely hit on 65 minutes when Kan Minsoo slotted the ball home from close range after the Wanderers' defence failed to clear a cross.
Some of the Wanderers' heads began to drop after the third goal and Ulsan was able to coast to victory with ease.
In the group's other match Kawasaki Frontale beat Guizhou Renhe 1-0.
The smog -- that's affected much of Northern China over the past week -- has been described as an "environmental crisis"....by the World Health Organisation.
