  Using muon spin rotation (\muSR) and infrared spectroscopy we investigated
the recently discovered superconductor K0.73Fe1.67Se2 with Tc = 32 K. We show
that the combined data can be consistently described in terms of a
macroscopically phase segregated state with a matrix of ~88% volume fraction
that is insulating and strongly magnetic and inclusions with a ~12% volume
fraction which are metallic, superconducting and non-magnetic. The electronic
properties of the latter, in terms of the normal state plasma frequency and the
superconducting condensate density, appear to be similar as in other iron
selenide or arsenide superconductors.
