Coming from the most remote parts of Northgard, the Kobolds are an independent civilization which grew prosperous for thousands of years. They occupy several tiles in Northgard, in the middle of which they built their village.
As they are very greedy creatures, they often control very precious resources which they will defend with their lives!
You can choose to trade with the Kobolds and you'll see that they can represent very strong and lucrative allies. but sometimes, you'll just need this surplus of stone too much, and your only choice will be to wipe them out.