The K-index is a code that is related to the maximum fluctuations of horizontal components observed on a magnetometer relative to a quiet day, during a three-hour interval. The conversion table from maximum fluctuation (nT) to K-index, varies from observatory to observatory in such a way that the historical rate of occurrence of certain levels of K are about the same at all observatories. In practice this means that observatories at higher geomagnetic latitude require higher levels of fluctuation for a given K-index.
More information on the K-Index and Kp Index + conversion formula.
http://sec.noaa.gov/info/Kindex.html
