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Although most Korean cities have recently experienced the slowdown of population growth, many local governments have promoted new town developments in suburban areas. The decline of inner cities has been a hot issue in urban planning amidst the popularity of sprawled development patterns. While the new town development has contributed to the rises of homeownership and local tax revenues, it also has been criticized as one of contributors to the decline of inner cities. However, the causal effects between the suburban new development and the decline of inner cities have not been measured in Korea. The purpose of this study is to measure the impacts of new towns on the decline of inner cities using a multiple regression model for all cities in Korea and identity major factors associated with the decline. Changes in population and employment of old downtowns are used as dependent variables in two models, and the characteristics of new towns along with other control variables are used as independent variables. The results show that the developments of new towns in suburban areas are positively related to the decline of inner cities and negatively affect their changes in population and employment.
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