From reading the articles I would conclude the following:
RFA, a US-funded asian 'news broadcaster', very likely has created this piece of propaganda as an attempt to use the popularity of the Squid Games to disseminate mis-information about North Korea
and
North Korea did pass a law that specifies death as a possible penalty for distributing South Korean content
That NKnews site is also American. I thought that something like this would be easy to verify, so I have tried to find a bit more information, and according to this site:
While the text of the law was not made public outside of the North, anecdotal reports since indicate that this has prompted a widespread crackdown on foreign content and influence in the country.