Nanocrystalline ZnO particles were prepared using the high-energy ball milling technique and investigated with electron paramagnetic resonance (EPR), impedance, and Raman spectroscopy to reveal the origin of surface and core defects. We observed two distinct EPR signals with different g-factors, g ∼ 2.0 and ∼1.96, indicating EPR-active defects on the surface and core, respectively. Using the semi-empirical core-shell model, we identified that sufficiently small nanocrystals (below 30 nm) can show p-type character. The model can also explain the origin of the non-linearity of the U-I behaviour in nanocrystalline ZnO.