I will post the update now and add screenshots later. I have already made them but must find a host site for them.

As mentioned before, South Korea declared war and prompt action had to be taken in the DMZ. South Korean troops began firing on our courageous defenders who returned fire from their prepared and purely defensive positions. I had deployed at the border a deeply-echeloned body of mostly mechanized infantry backed up with a small fragment of the DPRK's artillery force and some AA and supply vehicles. The initial set-up would have worked great if the DPRK was a modern high-tech army, but unfortunately of course it isn't and consequently some things went wrong nearly immediately.
At first, it didn't look so bad. South Korea's offensive formations, including a very large number of M48, K1 and K2 tank units, where quickly met at the border and worn down. Mechanized infantry units were also engaged and treated rather roughly. But a problem developed at the western end of the front, directly opposite Seoul. The problem concerned a very large concentration of South Korean artillery protected by dug-in mechanized infantry with full garrisons to back them up. The South Korean artillery was considerably more numerous in this sector than my own, and considerably more advanced. South Korean guns outranged mine in some cases and the front line of the DPRK army was under heavy fire and taking casualties.

A decision was taken at the highest level to neutralise the threat of South Korean artillery firing from the protection of Seoul by capturing the capital city and hopefully forcing the South to surrender.
The initial attack was successful in the centre and in the east, but in the west the withering fire of the artillery in Seoul caused a considerable hold-up. Additional units held in reserve were comitted to this front, including the best and latest addition to the DPRK armour - the T-72M1 formations. Finally all infantry units, AT units and armour units were deployed, including all foot infantry, and sent to Seoul to win the battle by means of attrition.

It only took a few days of combat for the high command to realize that this strategy was not working. South Korean artillery fire in the Seoul sector was so withering that any new unit to enter the combat zone evaporated nearly instantly. This was a situation where only huge numbers of men and vehicles could secure victory for the Motherland. And this led to the final tactic that was successful - the all-arms mechanized wave attack. All units received orders to attack Seoul. All remaining units were deployed for the battle, including over four hundred artillery units. The entire Western Fleet was sent to Seoul to help with shore bombardment, and was unfortunately lost in the process.

This finally enabled the brave DPRK forces to establish artillery superiority in the Seoul sector. Brave AA units mingling with the infantry to draw enemy fire enabled the few remaining combat units of the DPRK to slowly take territory in bitter city fighting. Casualties were very heavy on both sides. The population of Seoul dwindled to a mere two million. But Seoul was finally taken and securely held against the feeble imperialist counter-attacks. The South Korean capital was moved to Pusan.
Eventually it became obvious that even this strategy was not going to secure complete success, and the DPRK combat units were starting to be seriously depleted. There was a very grave danger that a serious and determined South Korean counter-attack could completely reverse the situation, and lead to the loss of all captured territory and even threaten Pyongyang. So, feelers were extended to the hated enemy concerning a temporary cease-fire, which was secured at the cost of four billion dollars.
Altogether, the DPRK lost 600 units while the ROK lost 300. DPRK had 150.000 military casualties while the ROK had 100.000 and several million civilian casualties. The ROK has only three land build fabs now, while the North has been able to expand to fourteen. Given this ratio, it seems likely that the next war (which is bound to come soon) will finally secure total success.

The South Korean Navy and Air Force are both seriously mauled, while the North Korean counterparts continue to grow and expand. The North's wing of MiG-29s is still intact although the Su-25s were lost. Mi-24s are building to replace these losses.
The presence of Japanese ground units in South Korea is confirmed, and Japanese ships are in South Korean waters as well.
A period of reconstruction and repair followed, the entire North Korean army was refitted hastily and then reassembled into a defensive front. Petrol power plants around Seoul were scrapped and coal plants built around Pyongyang to take over their tasks. A new type of air-defense destroyer has been researched (Kashin) and they are being built as fast as the shipyards can cope to provide at least some form of air cover for the ASW-heavy naval forces the DPRK currently posses.
Just when the main task of re-organising the armed forces was complete, South Korea declared war yet again, forcing the brave peasants and workers of the DPRK's army to complete the task of liberation on the Korean peninsular.
The situation at the southern front just before the new declaration of war:
