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Than 100 nuclear war heads. the capital dubbed pyong-hattan. >> they are given apartments and then trade them. they are spending tens of hundreds of thousands to buy the best apartment. kim is desperate to convince the world that they are thriving despite catastrophe and sanctions. >> people are going to restaurants and taking taxis. >> kim is showing off international beer festival. >> he is trying toen counter the existing narrative that north korea is a backward isolated desolate place. the fist lady is a big part of the image makeover.

Backward place. >> the first lady ri sol-ju is a big part of the image makeover. >> north korea's image makers are turning kim jong-un and ri sol-ju into william and kate in the united kingdom. >> she became a fashion icon in north korea. >> rules of how women can dress changed. >> shorter skirts, taller high heels. >> luxury items or fake luxury items. faux cha nal bags, fake louis vuitton. >> there's a new moneyed elite. comrade kim is even allowing something that looks suspiciously like capitalism to grow. in a sense, kim jong-un is buying the support of pyongyang. but there is a problem. k...

Korea's a backward, isolated, backward place. >> the first lady ri sol-ju is a big part of the image makeover. >> north korea's image makers are turning kim jong-un and ri sol-ju into william and kate in the united kingdom. >> she became a fashion icon in north korea. >> rules of how women can dress changed. >> shorter skirts, taller high heels. >> luxury items or fake luxury items. faux chanel bags, fake louis vuitton. >> there's a new moneyed elite. comrade kim is even allowing something that looks suspiciously like capitalism to grow. in a sense, kim jong-un is buying the support of pyongya...

States. >> a legitimacy kim is said to crave. his glamorous wife appeared by his size along with xi and his first lady. >> kim jong-un is trying to look like a modern leader. he brings his beautiful wife. the optics are great. standing with xi jinping and his wife. the four of them looking great. this is what kim jong-un is after. the image makeover. >> reporter: but kim has come under more pressure than ever. sanctions by the trump administration could start to really squeeze his regime. >> squeeze their cash, take away money that the leadership needs to keep the army and the elite loyal. >> ...

Their offers, they do deliver. >> nobody actually thinks that kim jong-un is crazy, he's very rational, and the north koreanss are very shrewd, it's a win-win for north koreans too, they get to have an image makeover by sending this delegation. there's 20 athletes and 200 cheerleaders. they get to properly use this as an insurance for future provocation and how is the u.s. going to respond to north korea's provocations? >> it does seem to add to what terry said, and this handful of athletes have totally dominated the media landscape and coverage. i mean donald trump must be at some level envio...