The budget figure is probably BS. Their whole GDP is about 12 billion USD in toto -- and they give around 10-15% of state expenditure to the military budget (the peak was 30%, according to wikipedia, back in the seventies).
But even that figure ($10b) is comparable to places like The Netherlands, Quatar or Poland (hardly forces to be reckoned with), and 1/3 of what South Korea spends:
All military figures are BS. North Korea has 1,000,000 active member troops. Canada has 68,000 active member troops.
North Korea has more of everything than Canada, including aircraft, boats, and even nuclear weapons.
Canada spends $23 billion per year.
And as to forces hardly to be reckoned with, if you're talking in a convention war with the US or something, sure. To put that into contrast with hacking Sony, though, is utterly ludicrous. The latter could likely be achieved paying a group less than it costs to operate a single fighter aircraft for a year.
But even that figure ($10b) is comparable to places like The Netherlands, Quatar or Poland (hardly forces to be reckoned with), and 1/3 of what South Korea spends:
http://www.globalsecurity.org/military/world/spending.htm