A granular perpendicular magnetic recording medium having a surface treated magnetic layer comprising an oxidized or nitrogenized boundary layer formed on the surface of the magnetic layer, wherein the magnetic layer comprises granular magnetic regions having oxygen and/or nitrogen-containing grain boundaries. In one embodiment, the granular perpendicular recording medium further comprises a soft magnetic layer below the surface treated granular magnetic layer and a protective overcoat over the surface treated granular magnetic layer. A method of manufacturing a granular perpendicular magnetic recording medium includes depositing a magnetic layer having granular structure over a substrate and subsequently surface treating the granular magnetic layer in an oxygen and/or nitrogen-containing atmosphere to produce an oxidized and/or nitrogenized boundary layer formed on the surface of the granular magnetic layer. The granular perpendicular magnetic recording medium of the present invention exhibits high Hc and SNR while exhibiting improved corrosion resistance and contact start-stop performance.