Since KFC is willing to fill potholes in exchange for advertising on said potholes, almost any strange form of advertising seems possible. After all, they already created a giant logo designed to be seen from space. They probably should have just given out promotional decals instead.
Still, it seems this alleged Taco Bell promotion must be totally fictional. If it is real, I think it shows a profound lack of judgment to tempt the volatile North Korean dictatorship. Did we learn nothing from the Chinese Democracy incident?