I have spent a lot of time in Everfrost doing newbie Barbarian shaman stuff and so I was always looking for Karg to do the Polar Bear Skin cloak quest. He is never ever up. I finally found him one time while hunting Mammoths for the Totemic armor quest piece. I turned in 3 skins and got 3 cloaks and then ganked him for his Cloak of the Icebear. I suspect that he dies as soon as someone finds him. Good luck with your quest.
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