Where's that LOD settings exactly? I found one, but it looks ok... :/
At this stage we can reject those solutions:
-Low settings / Graphic card render optimization = Other models looks great.
-Wrong UV map
-Normal / specular maps or scaling material in Mat editor
-Export issue = No problems
-Import issue = No problems
I don't know what to do... BUT! Wait, I have two ideas! I've updated graphic card drivers three days ago. Last time I been on UDK was a day before update. Then the issue appeared, but other models looks ok. So, I'll upload model + texture here. Please, someone import it to UDK and see on it's own. I also check my graphic card properties.