According to the website, Teal Mask doesn't take place in Paldea. Kitakami, the place it happens, is a whole other place so the japanese aspects of it shouldn't really interfere with Paldea (although someone mentioned the bamboo forest being close to the border could be a hint that a japanese themed place was there, which makes perfect sense).
From what it seems, Kitakami is probably based on Onigashima (Ogre Island) - or Megijima, the real location often linked to it. In what is probably the most well known tale of Japanese folklore, Momotaro goes there to slay the Ogre King and is aided in his adventure by a dog, a monkey and a pheasant he tames using dango.
The legendary trio is obvious based on the three animals and are referred to as heroes that once protected Kitakami, while Orgepon is named after an ogre and on the trailer you can see the pokémon trainer on Momotaro's place chasing after it along with the animal trio:
I would have never guessed Orgepon was based on an ogre if it was not on the name. It looks more like some kind of trickster instead of a brute.