Propaganda Village is a fake, set-up "town" built by the North Koreans located in the Southern Province of North Korea.
The "Village"
The Propaganda Village is, as described by Peng, a "faux (meaning; fake) village" comprised of several fake buildings, all of which are hollow structures suspended by numerous metal bars.
It is unknown what exactly was the purpose of the village is, although as can be inferred from its name, it was used by the North Koreans for propaganda, although what kind of propaganda exactly is under speculation. Most likely it was used to hold television broadcasts where generals or other highly important people would be filmed in front of just in case something goes wrong or the something is happening in the other cities.
A reporter of the GSRN can be found near the entrance of the village, who will provide an "odd job" for the mercenary, namely delivering him safely to a distant battle zone which is close to the Demilitarized Zone (DMZ), for which the mercenary will be rewarded with money. Also located in the village is a large statue of General Song, which adds to the "propaganda" theme.
Contracts
Here is a list of contracts associated with the Propaganda Village:
Persuasion
Faction: China
One of the Chinese contracts involves defending six PLA officers from an attack by South Korean forces in the Propaganda Village. During the contract, the village is reinforced by several stationary weapons, and at least one Type 80 tank will appear there.
The South Koreans will primarily attack using humvees, although at one point, an LHX Light Attack Helicopter will appear from above, and a K200 APC will be the last enemy encountered in the mission. There is a conveniently placed defensive point located at the end of the village where the South Koreans invade from that contains many supplies and emplaced weapons to make the fight easier. The mercenary will receive a bonus if none of the Chinese officers are killed for the duration of the contract.
Embedded
Faction: Allied Nations
Garrett tasks the mercenary with the job of acting as an escort for a GSRN journalist who wants to film some footage for his network. He will request to be brought to five locations, the fifth of which will bring him to the Propaganda Village.
Real Life
The Propaganda Village is probably based off Kijong-Dong [1], a small village in real life very similar to the Propaganda Village.