The effect of co-sputtering condition on the structural properties of $Mg_xZn_{1-x}O$ thin films grown by RF magnetron co-sputtering system was investigated for manufacturing ZnO/MgZnO structure LED. $Mg_xZn_{1-x}O$ thin films were grown with ZnO and MgO target varying RF power. Structural properties were investigated by X-ray diffraction (XRD) and Energy dispersive spectroscopy (EDS). The ZnO thin films have sufficient crystallinity on the high RF power. As RF power of ZnO target increased, the contents of MgO in the $Mg_xZn_{1-x}O$ film decreased. LED was manufactured using ZnO/MgZnO multi-layer on p-GaN/$Al_2O_3$ substrate. Threshold voltage of multi-layer LED was appeared at 8 V, and it was luminesced at wave length of 550 nm.