A unique phenomenon, the “conflict-reconciliation” cycle prevalent on the Korean peninsula consists of three levels of fluctuating mechanisms: the vibrating China-U.S. rivalry at the international level; the chaotic Northeast Asia (NEA) management mechanism at the regional level; and the vicious cycle of mutual cognition at the bilateral level. This cycle has been shaped by the diversified strategic objectives of NEA countries, the instability of the Republic of Korea (ROK) political structure,the fluid nature of the power structure of the Democratic People’s Republic of Korea (DPRK) and the impulse of related countries to influence the regional situation. The key to reverse and to reorient this cycle toward a more amicable direction lies in the proper handling of big power relations, the improving of regional political cycles,the upgrading of the diplomatic strategies of related countries, and understanding the DPRK more precisely. As one of the most important issues confronting ROK diplomacy, the “conflict-reconciliation” cycle offers a reference for solving other regional and international problems, such as the rivalry between China and the United States against the backdrop of China’s rise, the proper role of ROK diplomacy,the mutual understanding between the two Koreas, and the DPRK’s efforts to ease its political dilemma through economic means.