Abstract: Knowledge is a familiarity with something which may include information or skills acquired through experience or education. It can be characterized as information in context together with an understanding of how to use it which means the ʻRightʼ information, at the ʻRightʼ time, in the ʻRightʼ place, in the ʻRightʼ way, to the ʻRightʼ person. But this can only be possible for general knowledge which is documented. Tacit knowledge is not documented and thus it is difficult to transfer to another person through writing or by verbalizing it. An organization can have documented knowledge of its intangible and tangible assets but how many of the personals working there possess tacit knowledge is not known to the organization unless it is exposed or tested. Knowledge Management (KM) is one such means and an art of testing, creating, organizing, applying, and transferring both general and tacit knowledge to facilitate situational understanding and decision making. Tacit knowledge can be converted into a an explainable material provided the organization give free hands to her workers each one of whom have their own perception and way of working on any process and product. It is through this varied perception and way of thinking and doing that they can make a machine more Efficient, Effective, Simple, and more Economical. When this new process and/or product get registered/patented it becomes “Intellectual property” which can then be managed according to the country specific rules and regulations. This paper tends to describe the whole process using examples of Japan and Korea in order to make it simple and easy to understand. It will also describe how Knowledge Management generate new knowledge and in what way it is being and can be used by countries who are neither generating their own knowledge nor possess the ability to protect that knowledge.