The North would definitely use nuclear weaponry as it started losing, but delivery is the biggest problem for the DPRK at the moment. They have, apparently, managed to fit a nuclear warhead to a missile...but the warhead breaks up on re-entry, so it's pretty useless.
I'm not sure if they have actually managed to fit nuclear warheads to intermediate and short range missiles yet, you would have thought that if they had that they would make a show of force of this, to prove that they can strike Japan and the South with nuclear weapons at leisure.
But, honestly, if they DPRK attacked the ROK conventionally, without US help I'd say that they'd take Seoul and then stall out somewhere around Wonju. The ROK would win air superiority pretty easily and just shred any armoured column or infantry position that showed itself.
With the help of the US...I think that the DPRK would be lucky to get as far as Seoul. I mean, getting across the DMZ and through the killzones that have been carefully crafted over the past sixty years is going to destroy a large bulk of the DPRKs forces, and that's before US rapid redeployment reinforcements start streaming in. It would be a bloodbath for the North Koreans, and the Kim dynasty would not survive it, someone in the military would Tom Clancy very quickly and sign a peace treaty.
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