Formality and informality is very clearly distinguished in Korean.
Conversation with an elder or an unknown person are all formalized. Sentences end with words like "yo", "da" which usually indicate formality. When you talk to anyone older than you even by one year, you should speak in a formalized way as if talking to an elder (because by definition, even someone 1 year older than you is an elder). Also even words like yes and no are formalized to "nae" and "ah-ni-yo"
When talking to someone your age or younger, you speak in informalized sentences. These sentences tend to end without the "yo" or "da" but there are exceptions. In terms of yes and no, they become "eung" and "ah-ni". Notice how the "yo" in ah-ni-yo is removed in the informalized version.
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