We present comprehensive spectroscopic and photometric analysis of the detached eclipsing binary KIC 12418816, which is composed of two very similar and young main-sequence stars of spectral type K0 on a circular orbit. Combining spectroscopic and photometric modelling, we find masses and radii of the components of 0.88 +/- 0.06 M-circle dot and 0.85 +/- 0.02 R-circle dot for the primary and 0.84 +/- 0.05 M-circle dot and 0.84 +/- 0.02 R-circle dot for the secondary. Both components exhibit narrow emission features superposed on the cores of the Ca ii H and K lines, while H alpha and H beta photospheric absoprtion is more completely infilled by broader emission. Very high precision Kepler photometry reveals remarkable sinusoidal light variation at out-of-eclipse phases, indicating strong spot activity, presumably on the surface of the secondary component. Spots on the secondary component appear to migrate towards decreasing orbital phase with a migration period of 0.72 +/- 0.05 yr. Besides the sinusoidal variation, we detect 81 flares and find that both components possess flare activity. Our analysis shows that 25 flares out of 81 exhibit very high energies together with lower frequency, while the rest of them are very frequent but with lower energies.