An image processing method includes a step of extracting an inner circle and an outer circle from an annular image, a step of obtaining the center for the extracted inner circle and the extracted outer circle respectively, and a step of moving a processing center serving as a reference in the polar coordinate conversion gradually between the center of the inner circle and the center of the outer circle to convert the circular image into a panoramic development image. According thereto, when an annular image of a side wall surface of a hole imaged by an omnidirectional imaging device (10) is converted into a panoramic development image according to a polar coordinate conversion, a distortion resulted from a position deviation occurred between an optical axis (L1) of the omnidirectional imaging device (10) and a central axis (L2) of the hole (H) can be corrected.