In addition to Wolfgang Bangerth's explanation of temperature and concentration, let me give an other application where such interface conditions arise: (linear) elasticity, which has a similar structure to the elliptic equation in your example. Consider the situation with no interface first. Then the equilibrium, constitutive and kinematic equations of linear elasticity read
\begin{gather}
\sigma\cdot\nabla = \mathbf{0}, \quad \mathbf{x}\in\Omega \\
\sigma = \mathcal{C}:\varepsilon, \quad \mathbf{x}\in\Omega \\
\varepsilon = \nabla^s\mathbf{u}, \quad \mathbf{x}\in\Omega
\end{gather}
with properly defined boundary conditions, where $\Omega = \Omega_1 \cup \Omega_2$, $\mathcal{C}$ is the Hooke tensor, $\sigma$ is the Cauchy stress tensor, $\varepsilon$ is the linearized strain tensor and $\mathbf{u}$ is the displacement vector.
A physically equivalent formulation is when these equations are written for each subdomain and the subdomains are tied together:
\begin{gather}
\sigma_i\cdot\nabla = \mathbf{0}, \quad \mathbf{x}\in\Omega_i \\
\sigma_i = \mathcal{C}_i:\varepsilon_i, \quad \mathbf{x}\in\Omega_i \\
\varepsilon_i = \nabla^s\mathbf{u}_i, \quad \mathbf{x}\in\Omega_i
\end{gather}
with the continuity of the displacement field (no interface separation) and the traction field (Newton's third axiom):
\begin{gather}
\mathbf{u}_1| = \mathbf{u}_2, \quad \mathbf{x} \in \Gamma \\
\mathbf{t}_i = -\mathbf{t}_j, \quad \mathbf{x} \in \Gamma.
\end{gather}
By Cauchy's theorem, the traction vector can be expressed with the stress tensor as
\begin{equation}
\sigma_i|_\Gamma\cdot\mathbf{n}_i = -\sigma_j|_\Gamma\cdot\mathbf{n}_j.
\end{equation}
If you substitute the constitutive and kinematics equations into this equation, you get the structurally same condition as what your teacher wrote. Here, the fourth-order tensor $\mathcal{C}_i$ corresponds to the scalar $K_i$ and $\mathbf{u}_i$ corresponds to $u_i$.
Remark 1: The above formulae hold even if $\Omega_2 \not\subset \Omega_1$ (i.e. $\Gamma$ is not closed), but $\Omega_1$ and $\Omega_2$ have a common boundary (i.e. $\Gamma \neq \emptyset$).
Remark 2: The same considerations hold for multiple subdomains, in which two neighbouring subdomains $\Omega_i$ and $\Omega_j$ are separated by the interface $\Gamma_{ij}$.
Remark 3: Note that writing the PDEs for each subdomain independently and then tying them together resembles a domain decomposition method. Indeed, if the continuity conditions are imposed by a Lagrange multiplier (which turns out to be equivalent to the interface traction), the resulting mixed formulation is the continuous analogue of the FETI domain decomposition method.