An apparatus and method for selectively increasing contrasts of bright and dark regions and automatically determining an appropriate degree of correction such that the image has a corrected luminance that is closer to an estimated optimal average luminance (EOAL) determined from a quantity of light at pickup. The apparatus for correcting the image comprises a real average luminance calculating means for calculating a Real Average Luminance (RAL) of an incoming image from a luminance histogram representing a luminance distribution of pixels of the incoming image, an optimal average luminance estimating means for obtaining a quantity of light using information with respect to a pickup condition of the incoming image and for estimating the EOAL from the quantity of light, and a luminance correcting means for correcting a luminance of pixels of the incoming image based on a luminance difference (.DELTA.L) between the RAL and the EOAL.