Knowledge must be not only taught in literature class, but also be derived as a result of learning literature. For this reason, literary knowledge is the beginning and closing of teaching literature. So, it is important matter for us to show what knowledge is needed in literature education and to describe the relationship with literary knowledge and literaryability or competence. This study explored the concept, peculiarity and position of literary knowledge in the Korean national curriculum(2007) and recognized the present of literary knowledge research and practice. We have found some problem. First problem is thegoal or aim of teaching literature is vague or uncertain, so there are not criteria to select, display, and assess literary knowledge. Second problem isthe confusion of contents and method. As this confusing, procedural knowledge (know how) has been regarded as the more important contents than declarative knowledge (know that) in literature education. We have shown that it is not right anymore. All kind of knowledge which is taught, is accepted as a mode of propositional knowledge to students. It is more important to alter literary knowledge to literaryability or competence. Finally, this study confirmed the proposition that the goal is decided, literaryability or competence is specialized as the goal, literary knowledge is selected, andthe method to alter literary knowledge to literaryability or competence is designed in Korean literature education.