North Korea defended tenaciously and showed tactical discipline and flashes of skill in attack as they came within four minutes of forcing a second successive goalless draw following last month's 0-0 stalemate with South Africa.
The team from the hermit state, backed by about 20 flag-waving compatriots in the stands, lived up to their reclusive reputation as they refused to attend the post-match news conference.
Striker Roque Santa Cruz saved Paraguay's blushes by scoring an 86th-minute penalty given away by Nam Song-chol who, under no pressure from an opponent, used his hand to control a pass in a moment of naivete.
North Korea coach Kim Jong-Hun has given little away about tactics but it seemed clear on Saturday they will try to frustrate first-round World Cup opponents Brazil, Ivory Coast and Portugal.
Although their defence was well-organised and hard-working, they often looked lightweight in direct physical challenges.
They also had difficulty playing their way out of defence, with goalkeeper Ri Myong-guk repeatedly pumping long kicks into the Paraguay half.
"They defend very well, create a lot of complications and are very fast on the counter-attack," said Paraguay coach Gerardo Martino, whose team have reached their fourth successive World Cup.
