The IMF expects the Korean economy to expand 2.7 percent this year.
That's up from its previous forecast of 2.6 percent made in March.
The revision reflects the Bank of Korea's latest growth estimates, but also an improvement in the global economy,. which the IMF forecasts to grow 3.5 percent this year, up a tenth of a percentage point from its earlier projection.
Other bodies have also recently raised their outlooks for Korea.
The state-run Korea Development Institute now forecasts 2.6 percent growth, up from 2.4 percent -- and the Bank of Korea also at 2.6 percent, up zero.one percentage point.
The upward revisions have been attributed to a recovery in the country's exports, driven by a modest recovery in the global economy.
Korea's exports have been on an upward trend since last November, putting an end to nearly two years of decline.
But it's a little too early to say Korea's recovery momentum is strong -- as the local economy still faces a number of obstacles in its path.
There are concerns that more protectionism from the U.S. could weigh on Korea's export recovery.
Plus, if U.S. interest rates keep rising and eventually overtake Korea's, that could trigger a capital outflow.
At home, geopolitical risks on the Korean peninsula could take a toll on financial stability, and hurt already dampened consumer sentiment and investment.
"Korea has been mired in a political scandal since late last year, so we haven't been able to step up investment by conglomerates, and corporate restructuring program has been slow. Korea still needs to be able to sort these problems out, before it can take the economy to the next level. It might just be on a cycle of rebound after hitting the bottom."
Some experts say that because Korea's recent recovery is due in part to global factors, it's unclear what the future may hold.
For now, they say the new administration, which takes over in May, will have to focus on risk management and maintaining flexible fiscal policies to cushion potential risks at home and abroad.
Kim Min-ji, Arirang News.