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 naivety.
"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.
"This is a very organised team who work very hard," added Martino, who was also impressed by the lack of North Korean protests when decisions went against them, including the penalty.
"I think this is common in all the teams from the Far East, you see it with South Korea, China, Japan, where the respect for authority is something which stands out. They never protest."
Santa Cruz said: "It's very tough when you get teams like that and North Korea is one of the teams where the game is very hard to win."
Anzere's director of tourism David Chabbey said he believed it was positive exposure despite the North Korean government's poor human rights record.
"For us it's important to be in the media," he told Reuters. "As long as we're in the media, it's good and it's sport, we don't talk about politics.
"The benefits will be good, there's a lot of interest in North Korea, they're an interesting team."
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