PURPOSE: To obtain a naphthalene compound which is useful as an intermediate for medicines, agrochemicals or functional materials with industrial advantage by using scandium trifluoromethanesulfonate as a catalyst.

CONSTITUTION: An ester of formula I [R1 is a 1-10C (halogen-substituted) alkyl, cycloalkyl; R2 to R are each a 1-6C alkyl, alkoxy] such as 1-naphthyl acetate is heated in the presence of scandium trifluoromethanesulfonate, for example, in a solvent such as toluene at about 50-140°C to effect rearrangement to give the objective compound of formula II such as 1-hydroxy-2-acetylnaphthalene. The amount of the sulfonate is about 0.02-0.8 mole per mole of the starting ester.