I've never played Knights of the Old Republic. The name was originally going to be Malachi, but I decided at the last minute that I didn't want names that were too closely related to any real-world religion. So I dropped the "hi" and slapped on a "k", which happily gave me a unique name.
And his "friend" Kotor was just random. I picked sounds that sounded like an ancient Conan-type warrior to me.