Potassium‐ion (K‐ion) rechargeable batteries, considered to be lucrative low‐cost battery options for large‐scale and capacious energy storage systems, have been garnering tremendous attention in recent years. However, due to the scarcity of cathode materials that can allow the reversible reinsertion of large K‐ions at feasible capacities, the viability of K‐ion batteries has been greatly undercut. Herein, a potential cathode material is explored in the K2O–Fe2O3–MnO2 ternary phase system, which not only demonstrates reversible K‐ion reinsertion but also manifests relatively fast rate capabilities. The titled cathode compound, K0.4Fe0.5Mn0.5O2, demonstrates a reversible capacity of ≈120 mAh g−1 at 10 h of (dis)charge (viz., C/10 rate) with ≈85% of the capacity retained at a 1 h of (dis)charge (1 C rate), which is considered to be good capacity retention. In addition, both hard and soft X‐rays are used to unravel the mechanism by which K‐ions are reversibly inserted into K0.4Fe0.5Mn0.5O2. The results reveal a cumulative participation of both manganese cations and oxygen anions in K0.4Fe0.5Mn0.5O2, illustrating its potential as a high‐capacity K‐ion battery cathode material that relies on both anion and cation redox. Further development of related high‐capacity cathode compositions can be anticipated.