This study aimed to investigate the relationships between residents` perception on the impact of South and North Korea tourism exchange, their emotional tendency and life satisfaction. Based on the review of related literature, residents` perception was conceptualized in terms of four different dimensions(political, economical, social and environmental). Data were collected from 232 residents who lived in Gangwon-Do on April 2011. Results of a structural equation model analysis indicated that the respondents` perception on the political and economic impacts of the North and South Korea tourism exchange were positively related to both of the positive and negative emotional tendency of the respondents. In addition, the residents` perception on the social and environmental impacts were also positively related to the two different dimensions of their emotional tendencies. Some implications and further research directions for tourism exchange police between South and North Korea were discussed.