A series of numerical experiments are performed to examine the generation of inter-annual variations by an inertial current in an idealized semi-enclosed basin with dimension comparable to that of the East Sea. Model results indicate that the inter-annual variations dominate the kinetic energy spectrum with a peak around the time scales of 2-3 years. These variations are mostly due to the westward propagating meanders and large eddies induced by the instability of current, indicating their dependency on the eddy-resolving capacity of the model. They are generated in the interior of the basin but their energy is largely confined near the western boundary such that the east-west dimension of the basin cannot be considered as a critical factor as long as the basin covers enough western boundary region. Overall, this study suggests that the inter-annual variation observed in the East Sea is due to the meandering and large eddies induced by the instability of the current.