Try to change file /administrator/components/com_k2/models/item.php line 338 from:
$handle->image_x = $imageWidth;
to :
$handle->image_y = $imageWidth;
I am not sure if it will work. If it doesn't take a look at the library K2 is using for resizing at
www.verot.net/php_class_upload.htm . Finally note that since this is a core hack you will lose it in future updates and of course you cannot get any further support.