LiDAR(light detection and ranging) system is considered for the indoor positioning system, which is as a creative IT fusion technology having potential power to create the new IT services. Especially in the fabrication shop, the LiDAR is more accurate than other commercial sensors and more useful to make 3D map by processing point cloud data. In this paper, we aim to present an ongoing study on the development of indoor positioning system for welding materials in the fabrication shop using LiDAR. we briefly introduce the LiDAR operation principle and a devloped virtual LiDAR simulator to obtain point cloud data, and finally the concept of indoor positioning system is explained with a diagram.