No, they're not malnourished because of that. Food production in North Korea never dropped below the minimum amount needed to ensure that everybody had the minimum amount of calories in their diet even at the height of the famine in the Nineties. The problem was the distribution of that food was utterly disastrous, as the economic system completely broke down as subsidies and fertiliser (North Korean agriculture was/is very fertiliser intensive) from the USSR/Russia dried up and the guaranteed market in the Eastern Bloc for North Korean goods disappeared. Urban North Koreans (Of which there are many - it is a heavily industrialised country) relied entirely on the "Public Distribution System" for their food, and when that disappeared in all but name, people in the cities just starved. Interestingly, people in rural areas generally did better as they had more ready access to food, so the North Korean famine is probably the only one in history where richer, urban citizens were hit harder than peasants.
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