Upvote:8
This sounds like a very poor judgment on behalf of Korean Airlines. Technically speaking, it is required that the ticket will show the same name on the passport but first and last are sufficient. I've traveled so many times from the US and never placed a middle name.
You're not only entitled to get your money back but you're also entitled for a compensation from the airline for the wrong call. You will need to submit a very detailed letter to customer relation of Korean Airline and explain exactly what has happened. Names of employee who refused her, time of travel, PNR, ticket number and so forth.
A NO SHOW definition is when you're not AT the airport at the time of travel, this is not your case. She was DENIED BOARDING which makes your case completely different.
If you have a confirmation from Orbits that you placed a middle name - you should contact orbitz and demand for a explanation - why they omitted the middle name from her ticket.
Let us know the end result of this fiasco.