In this study, (CF4+O2) plasma is used to selectively treat the p-type GaN region underneath the bonding pad of the anode electrode of III-nitride light-emitting diodes (LEDs). A more uniform light emission distribution is observed in the far-field pattern of the plasma-treated devices and a 16% enhancement of the output intensity under the same biasing current is obtained. The maximum current that can be applied is also higher for the plasma-treated device. Not only does the plasma treatment of the p-GaN layer lead to a highly insulating region but also it does not degrade the device performance. Results from this study indicate that the plasma treatment is able to improve the current spreading of the III-nitride LEDs.