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Consumer video surveillance systems often suffer from bad weather conditions, observed objects lose visibility and contrast due to the presence of atmospheric haze, fog, and smoke. In this paper, we present an image defogging algorithm with color correction in the HSV color space for video processing. We first generate a modified transmission map of the image segmentation using multiphase level set formulation from the intensity (V) values. We also estimate atmospheric light in the intensity (V) values. The proposed method can significantly enhance the visibility of foggy video frames using the estimated atmospheric light and the modified transmission map. Another contribution of the proposed work is the compensation of color distortion between consecutive frames using the temporal difference ratio of HSV color channels. Experimental results show that the proposed method can be applied to consumer video surveillance systems for removing atmospheric artifacts without color distortion.