This paper aimed to examine core factors of the knowledge management and analyze their effects on organizational performance (employee satisfaction and competitive advantage). To accomplish this purpose, this study examined previous studies and summarized core factors of the knowledge management as people oriented, culture oriented and system oriented. 350 questionaries were distributed to the people living in Gumi. 327 questionaries were obtained and 302 data were analyzed by frequencies, correlation and multiple regression. The results of this study are as follows; First, we conducted exploratory factor analysis about three constructs (people oriented, culture oriented and system oriented) using oblique rotation method that did not assume independence among the factors and core factors of knowledge management were grouped together by three factors. Second, it is shown that three core factors of knowledge management have a positive influence on the employee satisfaction and competition (p<0.05). This study, however, have limitations in obtained sample and area. The future study should consider these limitations to improve model applicability in practice.