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I have been to North Korea over 100 times. AMA(r/IAmA)
I would say that by and large most people take most news they are given at face value. There is only one official news source and this is not a new system, the vast vast majority of people there have never known anything else. However people talk to ach other, and a fair number of North Koreans have been abroad (mostly to China) and know certain things that run counter to some things they are told. So its a combination. Much of the propaganda people are told is about how Koreans are best (rather than that they have more stuff I mean) and this is a powerful message for people wanting something to make them feel better about their situation. Being able to even slightly credibly blame the outside world (usually it is the US) for their predicament makes people feel that they are toughing life out all-in-this-together a kind of blitz spirit. This is outlined very well in this book www.amazon.com/Cleanest-Race-Koreans-Themselves-Ma… by the way