They will now face Iran in the semi-finals on Thursday.
Yun Min missed a first-half penalty for the East Asians at Jawaharlal Nehru Stadium here before Muadh Al Jahdhami gave Oman the lead in the 79th minute.
North Korea captain Kim Pom-hyok headed home the equaliser five minutes later and, with no extra-time at the AFC U-16 level, sent the match to penalties.
With Oman trailing 2-3 in the shootout, Al Jahdhami hit the woodwork to allow Kim to fire his side into the last four with his penalty kick conversion.
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