This paper presents an on-line correction method of current measurement errors for a pure-integration-based flux estimation down to 1-Hz stator frequency. An observer-based approach is taken as one possible solution of eliminating the dc offset and the negative sequence component of unbalanced gains in the synchronous coordinate. At the same time, the positive sequence component estimation is performed by creating an error signal between a motor model reference and an estimated q-axis rotor flux established by a permanent magnet (PM) in the synchronous coordinate. The compensator utilizes a PI controller that controls the error signal to zero. The proposed technique further contains a residual error compensator to completely eliminate miscellaneous disturbances in the estimated flux. The developed algorithm has been implemented on a 1.1-kW permanent magnet synchronous motor (PMSM) drive to confirm the effectiveness of the proposed scheme.