A research team, consisting of undergraduate and graduate students from UNIST Department of Industrial Engineering has been honored with the President’s Award of the Korea Institute for Advancement of Technology (KIAT) at the 2025 National Industry–Academia Convergence Project Lab Competition, held on November 27, 2o25. The team placed second among participating groups nationwide.
The award recognized the team’s work on an explainable thermal coal price index developed using large language models (LLMs). Thermal coal, widely used in power generation, steelmaking, and cement production, is known for its price volatility, making reliable monitoring and interpretation particularly important for industry.
The competition brought together teams representing 17 industry–academia convergence districts across the nation. Team UNIST participated as the representative of the Ulsan Industry–Academia Convergence District and received high evaluations for both analytical depth and practical applicability.
Over six months, the students worked with Korea East-West Power Co., Ltd. to build a model that not only forecasts thermal coal price movements but also explains the factors behind those changes. The team analyzed a broad range of data, including economic indicators, electricity supply and demand, climate-related variables, and international trade trends. These data were processed using LLMs and reorganized into a mathematical structure to improve transparency and reliability.
The resulting price index passed statistical validation and was used to construct a monitoring framework for tracking thermal coal market trends. To test real-world relevance, the team conducted simulations based on assumed coal trading and raw material investment scenarios. The results indicated consistent performance, supporting the model’s potential use in practical settings.
Judges noted that the research could assist companies in making informed decisions on raw material procurement and in preparing risk response strategies.
The project was led by undergraduate students Sang Jin Jin, SuHwan Park, and Jun Hyeok Seo, with graduate students KangMin Kim and HoYoung Lee supporting the research and analysis. Professor Yongjae Lee served as the faculty advisor in this project.
“The project showed how academic research can address real industrial problems when companies and universities work closely together,” the student team said. “We are grateful for the opportunity to represent Ulsan and to have our work recognized at the national level.”
Professor Lee added, “The students stayed engaged throughout the project and produced solid results. The study also suggests practical ways LLM-based methods can be applied to commodity and financial markets.”
