ABSTRACT The study focus was the influx of youth as an effect of the new town development policy through relocation of public institutions. We also examined differences according to location type (large and medium/small cities). In addition, we classified the effects of the influx of youth into the Seoul Metropolitan Area (SMA), non-Seoul Metropolitan Area (non-SMA), the surrounding area (SA), and non-surrounding area (non-SA). We conducted the analysis using the propensity score matching and difference-in-differences (PSM-DID) model. Study findings indicated that the new town development policy through relocation of public institutions had a positive effect, fostering an influx of youth. However, the effects of the influx of youth differed by location type (i.e. large and medium/small cities). Specifically, the effects of the influx of youth from the SMA were positive for both location types, but the effects from the non-SMA were statistically significant only for medium/small cities. In addition, we found positive effects on the youth influx from both the SA and non-SA regions in medium/small cities. This study can help policymakers and planners consider location types when developing strategies to activate a youth influx through the relocation of public institutions.