I had the same problem. This happened because you went to Kordar from demonis and not from Arlania. If you take the task of killing the 5 undead troops before speaking to elves you cannot continue. So, you completed the task before getting it. I found the fix on russian sites. Go to
http://forum.1csc.ru/index.php?/topi...3#entry1071483
find on the page (posted by RusKonsul) file 1459289644.zip, download it and copy the content into your game folder/sessions/addon. This will activate the dialog option with the dwarf king in Kordar. Good luck.