After a birdie at the first, Ko stagnated early on the front nine, carding her first bogey in 44 holes on the second, before holing four straight pars. However, she caught fire at the turn, reeling off four straight birdies and adding a further four on the run home to continue her rise up the leaderboard.
"It's a big confidence booster," said Ko. "I've been playing pretty solid - didn't have the greatest week at the Kia Classic, but then played pretty decent at the first Major of the year.
"With the winds not being as high and strong compared to the other days, I knew that the birdies were out there."
"Considering where I was after the first day, I'm pretty pleased with where I finished at the end of the week."
The strong finish clinched Ko's fourth top-10 placing in her seventh event of the year and her first top-five finish in 13 events, as she steadily begins to find her best form.
Ko's rivals for the world number one ranking - So Yeon Ryu and Ariya Jutanugarn - finished in sixth and seventh respectively.
* Danny Lee slid backwards at the RBC Heritage event on the PGA Tour, shooting a two-over 73 to drop 28 spots to a share of 53rd at two-under. Jason Dufner leads the tournament at 13-under.