A numerical experiment is made to study the combined effect of differential cooling and bottom topography on the formation of Ulleung Warm Eddy. The Ulleung Warm Eddy appears after the passage around the Ulleung Basin of coastal trapped baroclinic waves generated in the north initial density front to the north, the continental slopes both to the west and south, and the Yamato Rise to the east. It resides therefore always inside the Ulleung Basin, as confirmed by observations.