The optical properties of the iron-chalcogenide superconductor K0.8Fe2−ySe2 with a critical temperature Tc = 31 K have been measured over a wide frequency range in the a-b planes above and below Tc. The conductivity is incoherent at room temperature, but becomes coherent (Drude-like) at T > ∼ Tc; however, R 320 kΩ, well above the threshold for the superconductor-insulator transition at R = h/4e 2 6.9 kΩ. Below Tc, the superfluid density ρs0 48 × 10 3 cm −2 places this material on the scaling line ρs0/8 4.4 σ dc Tc, but in a region associated with Josephson coupling, suggesting this material is inhomogeneous and constitutes a Josephson phase.