Is it possible to correct the GeoIP location

When Google made pictures for "Street View" they also collected data about available wireless networks. Cellphones with the Android operating systems can use this data to determine their location via "Assisted GPS" (faster than traditional standalone GPS) and they also transmit information about available wireless networks back to Google.

Although you have hidden your SSID (="Wi-Fi name"), each Wi-Fi-router has a globally unique "hardware address" called the MAC address. MAC means Media Access Controller and is not related to Apple's "Mac" trademark. Each piece of information sent from/to your router contains the sender's and the receiver's MAC address.

How Google finds you even without GPS:
"Google is trying to locate you" means: "Do you want to tell Google that you are connected to a wireless network with the MAC 10:9a:dd:2b:49:4d and that there is another wifi device nearby with the MAC 10:9a:dd:3b:3d:5f?"

If Google knows where one of the two devices is, then it knows where you are.

Your ISP gives you your IP address. They own a block of IP addresses that, in one way or another, originate from the IANA.

The business that purchases those IP blocks has a physical location/address that can help place them geographically. (it only helps because, for instance, they can hand out an IP address to someone living in a different geographical area)

On average though, that method generally works.

Additionally, the ISP may have their own DNS servers. When you navigated to that website, your ISP's DNS server helped your browser get there. That DNS server also has a public IP address that is owned and registered.

In the end, I think it often boils down the address of the owner of the IP address as registered with the IANA.