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They're insane, but they aren't suicidal. They will do everything they can up to the point of war, but won't cross it. Remember when they sank that South Korean ship? Or shelled that island? Both of those should have led to major military responses, but they don't because even if North Korea would be crushed they have enough conventional ordinance to level most of South Korea's major cities (some missiles would probably fly Japan's way as well), and North Korea knows that nobody wants to provoke that.