^K is a vertical tab character. It is (in my observation) rarely used in documents but you've obviously found one of them.
You should be able to see the character when 'cat'-ing the file if you use the -b option for cat.
Removing it with vi or vim is pretty simple:
Code:
vi -b memo.txt
:g/<ctrl>v<ctrl>k/s///g
<ctrl>v allows you to enter an escaped character (such as <ctrl>k)
Obviously, don't type the text "<ctrl>whatever" but press the ctrl key and the specified character.
The best answer is, of course, modify the editor (human or otherwise) that created the file to avoid vertical tabs.