An atomic layer etching apparatus using reactive radicals and neutral beams and an etching method using the same are provided. The atomic layer etching apparatus includes a reaction chamber including a stage on which a substrate to be etched is seated, a plasma generator including a plasma chamber configured to supply reactive radicals and neutral beams into the reaction chamber and receive a source gas to generate plasma, an inductive coil configured to surround the exterior of the plasma chamber to generate an electric field, a grid assembly disposed at a lower part of the plasma chamber and including first, second and third grids for extracting ion beams, and a reflective body disposed under the grid assembly and configured to supply electrons to the ion beams to convert the ion beams into neutral beams, a shutter installed between the plasma generator and the reactive chamber and configured to adjust supply of the neutral beams into the reaction chamber, a purge gas supply part configured to supply a purge gas into the reaction chamber, and a controller configured to control supply of the source gas, an etching gas and the purge gas, and opening/closing of the shutter.