Normally, you would battle him. He has a Hitmonlee and Hitmonchan, and will give away a Tyrogue upon defeat.
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In Pokemon Gold, Silver, Crystal, Heartgold, and Soulsilver the Karate King is in Mt. Mortar, East of Ekruteak City. He will have a Hitmonlee and Hitmonchan, and give a Tyrogue upon defeat if you accept it and have a space empty.
Mt. Mortar
you have to get to the fighting dojo in saffaron on kanto
The Karate King is in the basement of Mt. Mortar, East of Ekruteak in Gold, Silver, Crystal, Heartgold, and Soulsilver. He has a Hitmonlee and Hitmonchan, and will give away a Tyrogue upon defeat.
The Karate King can be found in Mt.Mortar in Pokemon Gold. You will need the HM moves Surf and Waterfall to reach the part of the cave where the Karate King is training.