PHYSICAL REVIEW D, vol.65, no.7, 2002 (SCI-Expanded)
Taking the most general two-doublet model with explicit CP violation in the Higgs sector but no phase in the Cabibbo-Kobayashi-Maskawa matrix, we analyze the K-0 CP observables with pure new physics, the CP violation coming from the Higgs sector only. It is found that there is a direct correlation between the strength of FCNC couplings and the Higgs boson masses, and the lightest Higgs boson is nearly pure CP-even, but its small CP-odd composition gives a large enough contribution to epsilon(K).