In September 1949, Gay took command of the
1st Cavalry Division in
Osaka, Japan. He brought the 1st Cavalry to Korea, where it was in action on July 19, 1950, joining in the general South Korean-U.S. retreat before the North Korean invasion force. It was during this period that earned Gay an
oak leaf cluster to his DSC. His 1st Cavalry Division then played a crucial, albeit costly, role in the successful last-ditch defense of the
Pusan Perimeter, and joined in the breakout of U.S. and South Korean units headed north in September in conjunction with the landing of U.S. forces at
Inchon. Gay's troops then led the strike across the
38th Parallel and into
Pyongyang, capturing the North Korean capital on October 19–20. Two weeks later, his
8th Cavalry Regiment was hit hard by newly arriving Chinese Communist forces at
Unsan, north of Pyongyang, with one battalion left trapped when Gay's rescue efforts were ordered halted by his superior, I Corps commander Major General
Frank W. Milburn. The Chinese drove the 1st Cavalry Division and other U.S. forces from North Korea in December, and in early 1951 Gay, along with other top officers in Korea, was relieved of his command. Despite this, he was awarded the
Army Distinguished Service Medal for his service in Korea. The medal's citation reads as follows: Gay was appointed deputy commander of the U.S. Fourth Army in February 1951. In July 1952 he was appointed commander of U.S. VI Corps at
Camp Atterbury, Indiana and in April, 1953 made commanding general of U.S. III Corps at
Fort MacArthur, California. He moved to
Fort Hood in Texas when the III Corps was reassigned there.
No Gun Ri Massacre Over three days in late July 1950, the division's
7th Cavalry Regiment and U.S. warplanes killed a large number of South Korean refugees at
No Gun Ri, an event first confirmed by The
Associated Press in 1999 and later acknowledged in a U.S. Army investigation. The South Korean government in 2005 certified the names of 163 No Gun Ri dead and missing and 55 wounded, and said many more likely were killed. On July 26, the day the No Gun Ri killings began, Gay told rear-echelon reporters he was sure most refugees fleeing south were North Korean infiltrators. Two days earlier, word had been sent from his operations staff to fire on all refugees trying to cross U.S. lines. Gay later described refugees as "fair game," and the U.S. ambassador in South Korea said such a policy had been adopted theater-wide. == Later service, retirement, and death ==