This study sought to identify the factors influencing knowledge creation in overseas subsidiaries of multinational corporations (MNCs). Specifically, this study aimed to examine knowledge creation factors of overseas subsidiaries from the dimensions of subsidiary characteristics and inter-subsidiary relationships, including levels of decentralization, local embeddedness, and communication with peer subsidiaries. In addition, the study investigated whether the headquarters' level of control over overseas subsidiaries moderates the effects of each independent variable. To test the research hypotheses, a survey was administered to CEOs of overseas subsidiaries of Korean MNCs that had expanded abroad as of 2013, and local survey data were collected from 143 overseas subsidiaries of Korean MNCs across 37 countries. Multiple regression analysis based on the collected local data revealed that higher levels of organizational decentralization in overseas subsidiaries, greater local embeddedness, and more efficient communication channels with peer subsidiaries positively influence knowledge creation. Through these findings, it can be inferred that the sharing of experiences and knowledge through active interactions among organizational members within overseas subsidiaries, among various participants within local networks, and among subsidiaries belonging to the MNC subsidiary network positively influences knowledge creation in overseas subsidiaries.