So far, it sounds like you have a grounding problem. I'm more familiar with the 75/76 CB750F model, so I'm not 100% where the grounding wires are located on the K3.
Assuming they're similar to my recently purchased K2, I've attached a picture showing both grounding wires. You need to make sure both of these connections have nice clean metal to contact on the frame.
Please ignore the ugly wire-tie stuff the PO did
If the frame was recently powder coated, there is a good chance they painted over these spots which should have been left with some bare metal exposed. You will probably have to sand this down to bare metal.
Use some Vaseline or electrical connection grease while you're at it to keep it from corroding.