ACL has welcomed news the NSW Government has launched an inquiry into sex-trafficking of Korean women.

Strathfield MP Charles Casuscelli requested the inquiry following reports as many as 1,000 Korean women had been trafficked to Australia.

ACL's NSW Director David Hutt said the inquiry needed to look at the link between prostitution and human trafficking.

"Prostitution fuels the demand for trafficked women," he said.

"I welcome the news the government is looking into these claims. The inquiry should also examine the successful Swedish model which criminalises the purchase of sex.

"A growing number of countries are adopting this successful model, the latest being Israel (see Prostitution law passes first Knesset hurdle).

"If the government is serious about eliminating human trafficking, they must consider outlawing the purchasing of sex."