A species of Beastmen native to the Agyn Peninsula, Kobolds don't like to discuss the circumstances of their creation. Due to a similar stature and culture, they are believed to have been born of the fusion of Dwarves with large rodents. The fact the Dwarves of Sudgerd have welcomed them in their city without a second thought lends credence to that theory.
I suspect a renegade Crimson Wizard of House Chimera was involved in the Kobolds’ creation.
Due to their animal nature, Kobolds have a natural affinity with the wilds. They possess a strong sense of smell, and their fur provides apt protection against the harsh weather conditions encountered in the mountains. The Dwarves of Sudgerd quickly noticed the Kobolds' talents and put them to good use, enlisting them as trackers and pathfinders.
This has to be said about the Dwarves: true, they don’t much like anyone else, and they’re extremely suspicious of outsiders. But once you’re accepted, you’re accepted for life.
The creature's Defense is increased when fighting against Large (2x2) creatures. The Flanking bonus of Large creatures is also nullified.