The set $G_N$ of all $N$-fold tensor products of the identity and Pauli gates $X$, $Y$ and $Z$ is a basis of the real vector space $L_H$ of Hermitian operators on $N$ qubits. Therefore, $K(t)\in L_H$ can be written as a linear combination of elements in $G_N$
$$
K(t) = \sum_\alpha J_\alpha(t) P_\alpha\tag1
$$
where $P_\alpha\in G_N$ and $J_\alpha(t)\in\mathbb{R}$. The coefficients $J_\alpha$ are time-dependent, because $P_\alpha$ are not and $K$ is. In other words, if coefficients $J_\alpha$ were not time-dependent then the right-hand side of $(1)$ would be constant, unlike the left-hand side.
For terms with more than one non-identity Pauli operator, the coefficients can be interpreted as the strength of the corresponding type of interaction.