How important is alcohol in Korean social life, and why?

One may or may not be shocked to learn that Korea has one of the world's highest consumption rates for alcoholic beverages, rivaling countries like Russia and Romania. In the World Health Organization's "Global Status Report on Alcohol 2004," Korea ranked among the top 20 countries in the world with highest consumption rates for two beverage categories (wine and spirits, including soju, or Korean-style vodka).