An iterative correction method for the stress release coefficient, leveraging numerical simulation, has been innovatively developed to address the significant error issues associated with the blind-hole method in high-stress residual stress testing of steel structures. This method effectively reduces measurement error in high residual stress regions through a discriminant iteration process. The finite element analysis technology was employed to accurately simulate the blind-hole method's test process, and additionally, Python was utilized for customizing the secondary development of ABAQUS software, thereby automating and optimizing the method. When compared with simulation and experimental data from the welding process, the efficiency, accuracy, and reliability of the correction method have been verified. The proposed method eliminates the need for tedious calibration experiments inherent in traditional methods, significantly enhancing the test's automation level and convergence speed, and ensuring measurement accuracy, which provides an innovative solution for the accurate evaluation of residual stress in steel structures.