The Importance of Institutions According to the video, what is one significant difference between South Korea and North Korea? South Korea has a higher population density than North Korea. South Korea has a totalitarian government, while North Korea has a capitalist system. South Korea fosters commercial cooperation and trust, while North Korea relies on political influence and control. South Korea has a centrally planned economy, while North Korea has a free market economy.The Importance of Institutions Match the characteristics to the correct country. CategoryCharacteristic of North Korea CategoryCharacteristic of South Korea Possible answers Commercial cooperation Prices are controlled. Cooperation and trust and honest commercial dealing Totalitarian state A developed, modern economy. Most people do not have the freedom to start businesses. Mostly darkness at night Entrepreneurs produce goods and services, which consumers wanted. Capital is allocated by the communist party Communism Economy is centrally planned and directed Allowed to earn and keep profit. Capitalism and a relatively free market economy