The main aim of this article is to examine how South Korea and North Korea may mitigate the ideological differences of the two Koreas. Without a major revision of the Juche ideology, it will be hard to embrace the doctrine of liberalism for a narrowing of the extreme ideological confrontation on Korean peninsula. The method to overcome the extreme difference of ideology is to accept western liberalism as a capitalistic developmental strategy in North Korea and to induce the high level of social capital in SK. The developmental strategy of North Korea must be the combination of planned and market economy such as the case of China. On the other hand, it is necessary to derive a high social capital in South Korea which can facilitate democracy, prosperity, and happiness. The high level of social capital has substantially generated an integral capacity for accommodating the various demands of citizens, which leads to stable democracy, development, and good governance in South Korea. Good governance, which is operated by the high level of social capital, may generate major consensus between South Korea and North Korea for peaceful unification under the initiative of South Korea based on the policy of idealism rather than realism.