Let us consider the $(j, j') = \left(\frac{1}{2}, 0\right)$ representation of $SO(1, 3)\cong SU(2) \otimes SU(2)$.
$j = \frac{1}{2}$ corresponds to $SU(2)$ generated by
$$ \tag{1} N_i^+ = \frac{1}{2} \left(J_i + i K_i\right); \quad i =1, 2, 3. $$
$j' = 0$ corresponds to $SU(2)$ generated by
$$ N_i^- = \frac{1}{2} \left(J_i - i K_i\right); \quad i =1, 2, 3. $$
For $j' = 0$ representation of $SU(2)$, the generators $$ \tag {2}N_i^- = [0] = 0 \Rightarrow J_i = iK_i$$
Eq.(1) then implies that $$ \tag{3} N_i^+ = \frac{1}{2}(iK_i + iK_i) = iK_i = \frac{1}{2} \sigma_i;$$ where the Pauli matrices $\sigma_i$ are the generators of $SU(2)$ for $j = \frac{1}{2}$.
Therefore $K_i = \frac{-i}{2} \sigma_i$, $J_i = i K_i = \frac{1}{2} \sigma_i$ and an element of $\left(\frac{1}{2} , 0\right) = \exp\left(i \vec{\theta} \cdot \vec{J} + \vec{\phi} \cdot \vec{K} \right)$.
My Question: In Eq. (2), $ \quad N_i^-$, $J_i$ and $K_i$ all are $1 \times 1$ matrices. Then how can we substitute $J_i = iK_i$ in Eq. (3), where $N_i^+$ is a $2 \times 2$ matrix? Addition of a number with a $2 \times 2$ matrix is not possible.
Inspiration: This question is inspired by the derivation provided in the book named "Symmetry and the Standard Model" by Matthew Robinson (page: 122).