Provided is a zinc oxide light emitting diode having improved optical characteristics. The zinc oxide light emitting diode includes an n-type semiconductor layer, a zinc oxide active layer formed on the n-type semiconductor layer, a p-type semiconductor layer formed on the active layer, an anode in electrical contact with the p-type semiconductor layer, a cathode in electrical contact with the n-type semiconductor layer, and a surface plasmon layer disposed between the n-type semiconductor layer and the active layer or between the active layer and the p-type semiconductor layer. Since the surface plasmon layer is formed between the n-type semiconductor layer and the active layer or between the active layer and the p-type semiconductor layer, the light emitting diode is not affected by an increase in resistance due to reduction of the thickness of the p-type semiconductor layer, and has improved optical characteristics due to a resonance phenomenon between the surface plasmon layer and the active layer.