Based on more than 3 years of moored current-meter records, this study examined seasonal variability of near-inertial kinetic energy (NIKE) as well as all large (greater than one standard deviation from the mean) NIKE events related to storms and eddies in the northwestern South China Sea. The NIKE in the subsurface layer (30–450 m) exhibited obvious seasonal variability with larger values in autumn (herein defined as August, September, and October). All large NIKE events during the observation period were generated by passing storms. Most of the NIKE events had an e-folding timescale longer than 7 d. The phase velocity, vertical wavelength, and frequency shift of these events were examined. The maximum NIKE, induced by typhoon “Neoguri,” was observed in April 2008. Normal mode analysis suggested that the combined effects of the first four modes determined the vertical distribution of NIKE with higher NIKE below 70 m but lower NIKE from 30 to 70 m. Another near-inertial oscillation event observed in August 2007 had the longest e-folding timescale of 13.5 d. Moreover, the NIKE propagated both upward and downward during this event. A ray-tracing model indicated that the smaller Brunt-Väisälä frequency and the stronger vertical shear of horizontal currents in an anticyclonic eddy and the near-inertial wave with larger horizontal scale facilitated the unusual propagation of the NIKE and the long decay timescale. Although the NIKE originated from wind, the water column structure affected by diverse oceanographic processes contributed substantially to its complex propagation and distribution.