A thorough explanation, though the part on the Communism involvement is where I question you. North Korea doesn't practice what was 'defined' as Communism, the equal distribution of wealth among all classes and the owning of the means of production by the working class, but instead it follows a Stratocratic Autocracy, with Kim Jong-Il and his family holding all power almost as idols among the people with the Army as a governing force.
The development of propaganda in those countries that practiced Communism
de jure is radically different from what we see in North Korea. Revolutionary propaganda portrayed the Bolsheviks, most notably Lenin, as heroes that were trumping a corrupt dictatorship emplaced over them, but they did not portray them as beyond human. Soviet WWII-era propaganda closely copied Western and Eastern propaganda. Really, all sides used similar propaganda to one another, then post-WWII it consisted of propaganda depicting the sheer militar strength of the Soviet Union, but again, it did not show the Soviet leadership or even military as superhuman. PR China, Vietnam, and Cuba, among others, could also be referenced for their propaganda, albeit PR China practiced a somewhat similar system to DPRK's cult of personality with its herocizing of Chairman Mao.
However, all of this aside, the propaganda of North Korea still borders on ridicule. Il-Sung and Jong-Il both were portrayed as superhuman beings capable of controlling the weather and manipulating the 'evil West', showing the West as an impoverished or greedy group that wanted to destroy its own people. However, North Korea's government at the same time forcefully took away land, forced food removals, overspent on its military, denied any free information to its people, and kept up a forced loyalty, real or faux, for its leaders, no matter who they were. At the same time, however, it was evidenced that DPRK's leadership partook in 'Western indulgences', such as technology and extravagance that their propaganda warned against, and with North Korea's active participation in Olympics events, it became obvious to some people of North Korea that the outside world wasn't as horrible as they were told. It makes sense that most people in North Korea are aware of this ridiculousness (hence the Chinese issue of dealing with North Korean runaways) but are forced to follow it, but what now strikes me as strange about your theory is DPRK loyalism within South Korea. South Korea isn't incredibly wealthy, no, but it's far better off than the North, so how would anyone in their right minds construct propaganda favoring the North?
