This study examined the concepts and activities of Knowledge management currently introduced and implemented in Korean firms . For this purpose, literature on the evolution of Knowledge manage practices were reviewed and a survey on the nature and level of knowledge management practices were conducted. Based on these literature reviews and a survey, this study found that the state of knowledge management practices in Korean firms were mainly focused on the risk minimization and efficiency improvement. In order to realize the ultimate purpose of Knowledge management, that is the pursuit of innovation an knowledge creation, it is imperative for Korean companied to reducethe barriers of Knowledge management and to crate the enabling conditions for knowledge creation, diffusion and utilization for innovation in the processes as well as the products. Implications of these findings were discussed.