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Just because a country calls itself something doesn't mean it's true.

Point of fact, the Democratic People's Republic of Korea is said to have four false statements in its name:

  1. It's not democratic, as nobody gets to vote on anything;
  2. It's not in any way shape or form "of the People"; only the Chairman's wishes matter and his word is law.
  3. It's not a republic -- it's a textbook example of a hereditary dictatorship.
  4. It only covers North Korea, not the entirety.

As the other answers point out, this isn't uncommon behavior, especially among oppressive regimes that see propaganda value in asserting the claims -- back when Germany was still split up, the communist-ruled eastern part named itself the "German Democratic Republic" despite again being none of those three.

More generally speaking, as a rule of thumb if a country or organization uses any of the phrases "for the People", "freedom", or "Patriotic" in their title, I recommend you get away from them as fast as prudent.