there is an abundance of cheaper, younger labour. If employers were to choose to maintain operations in South Korea, there is a possibility that they might incur higher costs in retraining or upgrading the skills of this group of middle-age workers. On top of that, higher healthcare costs might also be incurred and the government would need to set aside more money to maintain a good healthcare system to cater to the elderly. Due to the very low birth rate, South Korea is predicted to enter a Russian Cross pattern once the large generation born in the 1960s starts to die off, with potentially decades of population decline. Since 2016, the number of elderly people (+65 years old) outnumbered children (0 – 14 years) and the country became an "aged society". People older than 65 make up more than 14% of the total population. Urbanization Like other newly industrializing economies, South Korea experienced rapid growth of urban areas caused by the migration of large numbers of people from the countryside. In the eighteenth and nineteenth centuries, Seoul, by far the largest urban settlement, had a population of about 190,000 people. There was a striking contrast with Japan, where Edo (Tokyo) had as many as 1 million inhabitants and the urban population comprised as much as 10% to 15% of the total during the Tokugawa Period (1600–1868). During the closing years of the Joseon dynasty and the first years of Japanese colonial rule, the urban population of Korea was no more than 3% of the total. After 1930, when the Japanese began industrial development on the Korean Peninsula, particularly in the northern provinces adjacent to Manchuria, the urban portion of the population began to grow, reaching 11.6% for all of Korea in 1940. Between 1945 and 1985, the urban population of South Korea grew from 14.5% to 65.4% of the total population. In 1988 the Economic Planning Board estimated that the urban portion of the population will reach 78.3% by the end of the twentieth century. Most of this urban increase was attributable to migration rather than to natural growth of the urban population. Urban birth rates have generally been lower than the national average. The extent of urbanization in South Korea, however, is not fully revealed in these statistics. Urban population was defined in the national census as being restricted to those municipalities with 50,000 or more inhabitants. Although many