Thats simply not true. The following from Appleman:

The large numbers of Korean refugees crowding the Yongdong area undoubtedly helped the enemy infiltrate the 1st Cavalry Division positions. On 24 July, for example, a man dressed in white carrying a heavy pack, and accompanied by a woman appearing to be pregnant, came under suspicion. The couple was searched and the woman's assumed pregnancy proved to be a small radio hidden under her clothes. She used this radio for reporting American positions. Eighth Army tried to control the refugee movement through the Korean police, permitting it only during daylight hours and along predetermined routes.

In the meantime, and pursuant to General Walker's order on the 11th, Colonel Murch's 2d Battalion, 27th Infantry, had been engaged in helping to clear the enemy from the area south of Yongsan. On the 11th Murch's battalion departed from its assembly area near Masan and rolled north toward the Naktong River. A steady stream of Korean refugees clogged the road. As the battalion pushed its way through this traffic a refugee cart overturned, exposing about fifteen rifles and several bags of ammunition. Approximately twelve North Korean soldiers disguised as refugees accompanying it fled across an open field.

 Had you bothered to look at the references provided, you would see the sentence on Taejon is cited to Sloan, not Appleman. From Sloan:

but now hundreds of enemy infiltrators, many clad in white to mingle undetected with civilian refugees who moved freely among the American troops, were all around the men of the 34th. There was no safe haven from snipers firing rifles and tossing grenades from scores of buildings, and soon after daylight, NKPA tanks rumbled into the city.

 This is especially important considering that Mucio used the defeat at Taejon and the Nork use of refugee infiltrators as factor in his decision.  

 I have also found dozens of accounts from June-August 1950 in the papers speaking of Nork troops using refugees to mask their movements. If you continue to strip the article of this crucial context, I will put every singe account I can find in the article. I believe what we have here is an adequate summary of the tactics the Norks uses which drove the US policy on refugees.