The blistering attack from the North's powerful National Defence Commission (NDC) was the first official reaction from Pyongyang to a proposal Park made in a speech last month in Dresden in the former East Germany.
She urged the North to expand reunions of families separated by the division of Korea and increase cross-border economic and cultural exchanges, starting with the South bolstering humanitarian aid.
"Germany's unity is for us an example and model for a peaceful reunification," she had said.
"This is merely a daydream of psychopath", he said, denouncing Park's proposal, billed as the "Dresden Declaration" by Seoul, as "nonsense" full of "hypocrisy and deception".
"The fact that in that particular place, Park Geun-Hye lashed her tongue about reunification gave away her sinister mind", he said in a statement carried out by Pyongyang's state media.
Reunification is however enshrined as a national priority in both the South and North Korean constitutions, but pro-merger sentiment in the prosperous South has waned considerably in recent years.
Tensions on the Korean peninsula remain high since the South launched annual military exercises with the United States in February, described by Pyongyang as a rehearsal for an invasion against the North.
In a pointed protest at the exercises, Pyongyang carried out a series of rocket and missile launches, capped by its first mid-range missile test since 2009 on March 26.
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