A light emitting diode including a magnetic structure and a method of fabricating the same are disclosed. The magnetic structure composed of passivation layers and a magnetic layer is disposed inside a luminous structure composed of an active layer and a semiconductor layer. In the light emitting diode, the magnetic structure including the magnetic layer is disposed on a side surface of the active layer to improve recombination rate of charge carriers for light emission by increasing influence of a magnetic field applied to the active layer. In addition, the light emitting diode according to the present invention allows change in position of the magnetic structure including the magnetic layer depending upon an etched shape of the luminous structure, thereby realizing various magnetic field distributions.