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The purpose of this paper is to review and evaluate the neutral unification policy of North Korea, and to seek its possible application to the unification of the Korean Peninsula. Kim Il Sung, the former president of North Korea, proposed three times for the neutral unification of the Korean Peninsula to South Korea on the condition that the two Korean governments should not join in political and military alliances with the foreign countries or in any blocs of the world in October 1980, October 1985, and April 1993. Then, Kim Jong Il, Chairman of the North Korean National Defense Commission, is also known as having expressed his view of Korea's unification in the Swiss-like armed neutrality. It is analyzed that Kim Il Sung's proposal was based on an offensive unification policy in order to conform South Korea into the socialistic system whereas Kim Jong Il's armed neutrality seems to have the maintenance of his regime. North Korean scholars like to argue the invalidity of the 1910 Korea-Japan annexation treaty in light of the permanent neutral foreign policy which Kojong pursued. It is necessary for the South and North Korean scholars concerned to study on the 1910 Korea-Japan treaty by thorough textual research based on their close cooperation which is needed more than ever. If the Korean Peninsula were to be unified in a neutral state as Kim Il Sung's proposal, it is most unlikely that Korea could avoid foreign aggressions after its unification in a form of neutral state as the Korean history has shown. The people of South and North Korea should critically consider the neutralized unification of the Korean Peninsula, and strongly urge it to the four powers, the U.S., China, Russia, and Japan.