If the bore is just slightly scratched most times it can be reused.
Was it using oil/burning before you tore it down? a reputable machine shop can sleeve it back to std. size.
does the crank measure standard size or is it undersize? if standard it can be turned undersize and fitted with a new rod.
What you might want to do, is see what that machining/parts would cost vs. a good used engine.
I do remember it being mentioned that a larger piston from a 12 h.p. can be fitted but can't remember if it was a Kohler or not, I'm sure someone will post here.
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