So just to rephrase it to make sure I understand, it's more secure because even if the OTP is compromised, the entire system is not compromised, is that correct

So just to rephrase it to make sure I understand, it's more secure because even if the OTP is compromised, the entire system is not compromised, is that correct? However, if the original secret is compromised (K), then could an attacker easily generate OTPs?