Stock market liquidity plays an important role both in price discovery and cashability, which leads to the ease of post IPO financing in the market as well as IPO. Therefore, the stock market liquidity is one of the most important factors when choosing the right stock exchange to offer stocks.
KRX's yearly trading value in 2020 was US$5.2 trillion, which was the 3rd most liquid market in Asia next to China and Japan. In terms of world ranking, KRX was the 6th most liquid market in 2020 surpassing other major exchanges in Asia and Europe.
| No. | Exchange | Trading Value |
|---|---|---|
| 1 | NYSE | 26,176,916 |
| 2 | Nasdaq - US | 24,924,017 |
| 3 | Shenzhen Stock Exchange | 18,750,121 |
| 4 | Shanghai Stock Exchange | 12,830,535 |
| 5 | Japan Exchange Group | 6,337,933 |
 6 |
Korea Exchange | 5,221,924 |
| 7 | Hong Kong Exchanges and Clearing | 3,145,219 |
| 8 | Euronext | 2,677,807 |
| 9 | LSE Group | 2,242,691 |
| 10 | Deutsche Boerse AG | 2,211,992 |
| 11 | National Stock Exchange of India | 1,843,440 |
| 12 | Cboe Europe | 1,785,132 |
| 13 | Taiwan Stock Exchange | 1,612,257 |
| 13 | B3 - Brasil Bolsa Balcão | 1,390,388 |
| 14 | SIX Swiss Exchange | 1,322,756 |
Source : World Federation of Exchanges
Turnover velocity, a ratio of trading value to the market capitalization, is another indicator of market liquidity. The high turnover velocity of KRX proves that KRX is one of the most dynamic and liquid markets in the world.
| No. | Exchange | 2020 Average |
|---|---|---|
| 1 | Borsa Istanbul | 367% |
| 2 | Shenzhen Stock Exchange | 358% |
| 3 | Taipei Exchange | 277% |
| 4 |
Korea Exchange | 240% |
| 5 | Shanghai Stock Exchange | 184% |
| 6 | B3 - Brasil Bolsa Balcão | 141% |
| 7 | Nasdaq - US | 131% |
| 8 | NYSE | 121% |
| 9 | Taiwan Stock Exchange | 101% |
| 10 | Deutsche Boerse AG | 97% |
| 11 | Japan Exchange Group | 94% |
| 12 | The Stock Exchange of Thailand | 89% |
| 13 | ASX Australian Securities Exchange | 76% |
| 14 | National Stock Exchange of India | 72% |
| 15 | SIX Swiss Exchange | 66% |
Source : World Federation of Exchanges