There is a definite line between formality and informality in Korean language. Formal style of saying things are usually used when the other is older than you are, or someone you respected while informal style is used in daily languages between friends and people who consider themselves to be in a similar age range.
Korean people traditionally thought that having an appropriate courtesy towards elders is very important matter. From the culture that elders are respected, the language has formed to have polite word. For example, there are different words for meal, sickness, asking and dying. These are not used in every situation where one is older than the other, but it should be used appropriately in Korean culture.
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