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Recent experiments suggest that Mg condensation at threading dislocations induce current leakage, leading to degradation of GaN-based power devices. To study this issue, we perform first-principles total-energy electronic-structure calculations for various Mg and dislocation complexes. We find that threading screw dislocations (TSDs) indeed attract Mg impurities, and that the electronic levels in the energy gap induced by the dislocations are elevated towards the conduction band as the Mg impurity approaches the dislocation line, indicating that the Mg-TSD complex is a donor. The formation of the Mg-TSD complex is unequivocally evidenced by our atom probe tomography in which Mg condensation and diffusion through [0001] screw dislocations is observed in p-n diodes. These findings provide a novel picture that the Mg being a p-type impurity in GaN diffuses toward the TSD and then locally forms an n-type region. The appearance of this region along the TSD results the reverse leakage current., Comment: 5pages, 6figures