Based on a simple conceptual model of stratified ocean, the criterion of the geostrophic velocity inversion in and below the thermocline was derived ash′·ν′<0 and {ie1-1}, meaning that the slopes of the thermocline (h′) and the sea {ie1-2} must be opposite to each other, and thath′ must be strong enough to satisfy the latter inequality. The criterion was applied to discuss the features of the western boundary undercurrents, the counter undercurrents of the western boundary currents below the thermocline, and to discuss the dynamics of their formation finally resulting from the combination of the basin-scale circulation and local geostrophic balance. The formation mechanism, multicore structure, and transport variations of the Mindanao Undercurrent and those of other undercurrents, such as the North Equatorial Undercurrent and the Kuroshio undercurrent, can be satisfactorily explained by the above results.