South Korea's SK Hynix Inc., the world's second-largest memory chip maker, announced Tuesday it would spend 46 trillion won (US$38 billion) in facility investments over the next 10 years.

The plan was unveiled by SK Group Chairman Chey Tae-Won -- newly released from prison by a presidential pardon -- at a dedication ceremony for a new chip plant in Icheon, 80 kilometres (50 miles) southeast of Seoul.

The new plant will eventually attract a total of 15 trillion won investment, with the remaining 31 trillion won going on building two more chip plants -- one in Icheon and the other in Cheongju city.

SK Hynix reported a 65 percent on-year increase in second quarter net profit, missing analyst estimates, as slowing demand for personal computers and smartphones dampened memory chip prices.

Chey, 54, received his pardon on August 13 after serving 31 months of a 48-month prison sentence for embezzling 46.5 billion won from two SK Group affiliates.

President Park Geun-Hye said her decision to free Chey had been motivated by a need to "revitalise the economy".

On his release from prison, Chey had promised to work for the "economic and social development of our nation."