According to the tarot he has died. And while officials are hiding this, behind the scenes there is major turmoil. At first he may have gone into hiding like cats do when they’re sick, but he’s ultimately crossed over and forces are at work to start a new regime. Chances are it will be better in the long run, but for now there is competition for power and confusion about how to transition the North Korean government.
It looks like those who were closest to Kim Jong Il are of 2 minds, those who want to wait it out and see what happens (figure out where the tide of the country is) these people feel lost and confused. The other camp are vying for power, planning and formulating how to take power. Among the 2nd group there is tremendous competition to take the reigns of power and there is no clear stand out for who should take over.
There is a general consensus that if news got out about the “dear leader,” chaos, fear and confusion would break out in the country and perhaps a revolution would take place which is why there has been such a stalemate about how to proceed. And obviously why the government has been hiding his death.