A simple answer is that they see neither.

What they think they see is actually a short snapshot of North Korean life with a red circle, a red arrow and a red caption text that says "North Korean propaganda here!!! -->", carefully drawn by their local propaganda.

Sanity check: I present you a country X, whose language you don't speak, and whose news you don't read day to day. I show you their politician saying something. Can you tell if that was propaganda? Substitute X from "North Korea" to a country you know nothing about and see how the answer changes.