This paper presents a low-cost VLSI architecture for real-time barrel distortion correction in video-endoscopic images, utilizing a least-squares estimation approach to minimize hardware costs and memory requirements. The architecture incorporates Hornor's algorithm and a simplified linear interpolation method, resulting in significant reductions in computing complexity and resource usage compared to existing techniques. The VLSI design operates with 13.9k gates and achieves substantial improvements in speed and efficiency, making it suitable for high-speed clinical applications.