Yes. It kills anything and everything whether it has a thought or not. The attack has a great advantage since it focus's not only on the adversaries physical body but also destroys the essence, soul if you will, of that individual. It's like being attacked from two different planes of existence at the same time. And in that instant the person's spiritual essence is taken directly to " hell ". Gen is the only one I know of who has survived the assault. He did so by emptying his spiritual essence, heart and mind all in one fail swoop. "Onore wo mu ni suru". "Mu" means emptiness, nothingness and peace. So if you're tuned and focused with your mind, body and spirit then you'd most likely be able to survive the attack. But FEW individuals know that is possible. It'd take a wise and well trained warrior to actually pull off the maneuver. Kintaro and Motaro are lacking in such wisdom and training to bring together their mind, body and spirit to a peace where they could accept their sins and express nobility. They'd die instantly -- I can confidently say that.
Shin Gouki can turn mountains to dust with a single punch. He can sink Islands and obliterate nearly any and everything that crosses his path. Yes, Raiden and the other Gods are immortal. That means they don't age but I'm sure they have an essence which would more than likely be susceptible to the Shungokusatsu. And FYI Kintaro and Motaro are without a doubt great warriors who pose a threat to maybe the lower tier Street Fighters but they aren't even in Gouki's league. One hit from the Shungokusatsu -- that's all it would take.