In this report, a p+-GaN/SiO2/Ni tunnel junction with a local SiO2 insulation layer is designed to manage the current distribution for commercially structured AlGaN-based deep-ultraviolet light-emitting diodes (DUV LEDs) with a thin p-GaN layer. The experimental and calculated results prove that, besides the increased hole injection at the p+-GaN/SiO2/Ni tunnel junction, the local SiO2 layer produces an in-plane unbalanced energy band in the p-GaN layer for the proposed DUV LEDs, thus modulating the carrier transport paths and increasing the spread of holes. Enhanced optical power is obtained when compared to conventional DUV LEDs. In addition, the influence of the position of the SiO2 insulation layer on the current distribution is also investigated in this work. Placing the SiO2 insulation layer in the middle position of the p+-GaN layer is most helpful for increasing the hole injection efficiency for commercially structured DUV LEDs.