The Korean language has different grammar and vocabulary depending on the level of formality in a situation. In Korea, age difference and social position (”job status”) often take precedence over social ranking in Korea. Formal speech is called "jondaemal" (존댓말) and familiar/informal speech is called "banmal" (반말).
Honorifics are used with “jondaemal” and are used to differentiate between the formal and informal speech. Words like –yo and –seumnida are often added at the end of a sentence to show respect. Jondaemal is more directed to adults, seniors and acquaintances. Banmal, on the other hand, is less formal, but not necessarily disrespectful. Banmal is often used between friends of the same age or to people who are younger than you. Banmal in Korean literally translates into “half-words” in English, and it can be viewed as disrespectful in certain situations.
Below is a Youtube video that discusses when and how to use honorifics:
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