I did read it.Even if it is propaganda as you say, It is still relevant to the news and keeping a neutral point of view. since the KCNA is the only news agency to report in that country, it is essential to NPOV. Assuming your statement, all the other agencies reporting this, including us and all other respectable agencies would also be reporting the alleged propaganda. I say alleged because they did indeed shell that island. Who is to say they won't do it again. Not us.
Casting propaganda as news is irresponsible and is not NPOV. NPOV depends upon context. Call it what it is and there's no problem. But unsourced, unverifiable propaganda being placed in the same context as more respectable news sources is dishonest. NPOV does not mean that every side gets equal weight. It means that weight is given on every side in proportion to the evidence and credibility of those sources as well being cast in its proper context. I get a little tired of people propping up ludicrous sources making ludicrous statements in the name of NPOV as though simply mentioning "NPOV" quells any debate about a source's worthiness for inclusion in an article. It's not that simple.
What NKorea says is, you know, kinda part of a story about NKorea.
The KCNA article isn't being touted as news by Wikinews, it's being used as a source, since it's a press release from the North Korean government. It's no different than showing a clip of a North Korean official making the same statements at a press conference. The KCNA article is indisputable evidence of North Korea's threats. (What we now know, after-the-fact, as empty threats.)