SOUTH Korea's Busan New Port has expanded its capacity further with the inauguration of a seventh container terminal, reports London area WorldCargo News.

The opening ceremony, held on Friday and attended by president Yoon Suk Yeol, celebrated the terminal as a significant step towards transforming Busan Port into a world-class smart port and a central hub for global logistics.

This new facility marks the country's first fully automated terminal, equipped with remotely operated ship-to-shore cranes developed in Korea.

The automated cargo handling from ships is anticipated to boost port productivity by up to 20 per cent compared to conventional terminals, while also reducing the risk of safety incidents.

Established in 2006 to accommodate the surging trade at Busan Harbour its existing terminals could not manage, the Busan New Port has since undergone a phased development.

According to the Busan Port Authority, the expansion plans are projected to continue until around 2040-2050, with an estimated total project cost of US$32 billion.

Last year, container traffic at the Port of Busan reached a record high of 22.75 million TEU, showing a 3.1 per cent increase from the previous year.

President Yoon pledged to extend the tonnage taxation system beyond its expiration in 2025.

This system, applicable to shipping companies instead of standard corporate taxation, taxes companies based on their fleet's net tonnage rather than profits. Critics argue this system lacks tax equity.

South Korea regularly reviews the tonnage tax system every five years.

President Yoon's commitment to its continuation reflects the government's dedication to rejuvenating the domestic shipping sector.

President Yoon also pledged $4 billion in government funding to national shipping companies to support this effort, aiding fleet expansion and facilitating their transition to eco-friendly practices.