A linear compressor and a method of producing the linear compressor which do not generate eddy currents in an inside stator of a linear motor thereof, thus preventing an eddy current loss, caused by an electrical contact between a plurality of thin metal sheets of the inside stator. The linear compressor includes a cylinder having a piston therein, a magnet arranged around the cylinder to actuate the piston, and the inside stator arranged around the cylinder to be placed inside the magnet. The inside stator has the thin metal sheets arranged in a cylindrical arrangement, and a holder which is made of a nonconductive resin material and to which the thin metal sheets are insert-molded to be held in positions thereof in the cylindrical arrangement. Due to the nonconductive holder, the thin metal sheets are prevented from being in electrical contact with each other, and the linear compressor does not generate any eddy currents in the inside stator, and prevents an eddy current loss.