  We study the clustering properties of K-selected galaxies at 2<z<3.5 using
deep multiwavelength imaging in three fields from the MUSYC survey. These are
the first measurements to probe the spatial correlation function of K-selected
galaxies in this redshift range on large scales, allowing for robust
conclusions about the dark matter halos that host these galaxies. K-selected
galaxies with K<21 have a correlation length r_0 ~ 6 h^-1 Mpc, larger than
typical values found for optically-selected galaxies. The correlation length
does not depend on K-band magnitude, but it does increase strongly with color;
the J-K>2.3 distant red galaxies (DRGs) have r_0 ~ 11 h^-1 Mpc. Contrary to
findings for optically-selected galaxies, K-selected galaxies that are faint in
the R-band cluster more strongly than brighter galaxies. These results suggest
that a color-density relation was in place at z>2. Our results indicate that
K-bright blue galaxies and K-bright red galaxies are fundamentally different,
as they have different clustering properties. Using a simple model of one
galaxy per halo, we infer halo masses ~ 5 x 10^12 M_sun for K<21 galaxies and ~
2 x 10^13 M_sun for DRGs. A comparison of the observed space density of DRGs to
the density of their host halos suggests large halo occupation numbers;
however, this result is at odds with the lack of a strong small-scale excess in
the angular correlation function. We find that the z=0 descendants of the
galaxies considered here reside primarily in groups and clusters. [abridged]
