This study develops a highly transparent ohmic contact scheme using indium oxide doped ZnO (IZO) as a current spreading layer for p-GaN in order to increase the optical output power of nitride-based lightemitting diodes (LEDs). IZO based contact layers of IZO, Ni/IZO, and NiO/IZO were prepared by e-beam evaporation, followed by a post-deposition annealing. The transmittances of the IZO based contact layers were in excess of 80% throughout the visible region of the spectrum. Specific contact resistances of 3.4 × 10.4, 1.2 × 10.4, 9.2 × 0.5, and 3.6 × 10.5Ω·cm2 for IZO, Ni/Au, Ni/IZO, and NiO/IZO, respectively were obtained. The forward voltage and the optical output power of GaN LED with a NiO/IZO ohmic contact was 0.15 V lower and was increased by 38.9%, respectively, at a forward current of 20 mA compared to that of a standard GaN LED with an Ni/Au ohmic contact due to its high transparency, low contact resistance, and uniform current spreading.