This allows foreign corporations to take legal action against another country's government if they believe that government has infringed on their rights. That means if the Australian government does something that negatively affects the profit stream of a South Korean company, the company may sue it.

Trade Minister Andrew Robb and his Korean counterpart, Yoon Sang-jick, Korea Minister of Trade, Industry and Energy.

In details released on Thursday, the government said the ISDS in the new agreement with South Korea had retained appropriate "carve outs and safeguards" in areas such as public welfare, health and the environment.

"This will provide new protections for Australian investors in Korea as well as Korean investors in Australia, promoting investor confidence and certainty in both countries," the document says.

But Labor Senator Penny Wong said she was concerned about the impact of "any" proposed ISDS mechanism. "In the interests of transparency Labor has urged the government to release the text of the proposed agreement with the Republic of Korea at the earliest opportunity," Senator Wong said.