The built in Terminal Emulator is a copy of the KDE Konsole terminal application, for your convenience. It is available from the -> menu item or by pressing the F7 key, and will get the focus whenever displayed. Additionally, if the Sync Konsole with active document option is enabled, it will change into the directory of the current document if possible when it is displayed, or when the current document changes.
The default location in the Kate window is at the bottom, below the editing area.
You can configure the Konsole using its mouse button menu, for more information, see the Konsole manual.
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