Hi John D.,
In those days, the name '�¼ngaria' was written with an umlaut (just don't have the shortcut on my keyboard

)
Take a look at page 284 of Ian Hogg's "German Handguns" (code jkg). That one set me off, since it was the only KU explanation in the entire book that made sense to me. It shows "Konichliche �¼ngarische ...".
Althoug I like the link John S. mentioned as well:
K�¼chenchefs
About Hungarian forces under LW control:
In 1941-42 parts of the Hungarian airforce were placed under command of the VIII (8th) luftwaffe airgroup. Also, during the same era Germany was indeed topping up Hungarian supplies and airplanes.
The more I read about it, the more I come to believe that the K�¼/Luftwaffe markings on these lugers indeed have a link with Eastern-European involvement during the 1941-1945 period.