Originally Posted by Nick33
Is there a way to avoid this update altogether?
This update and all future updates! Get used to the fact that Knox will be on all future firmware updates for the S4, S3 Note 2 and Note 3.
Therefore if your present firmware doesn't already contain Knox, and a lot do already, you should disable automatic OTA updates and refuse updates via Kies as you are now on the latest firmware there will ever be without Knox. No going to Android 4.3 or KitKat I'm afraid.
Knox does not present a problem or concern to anyone running stock firmware unless they wish to root their phone and flash custom firmwares and mods. In fact, it provides an added layer of security against malware.