By dawn of 3 September the enemy penetration there had reached the vital east-west corridor road three miles east of An'gang-ni. As a result of this 5-mile enemy gain during the night the Capital Division all but collapsed. [22-9]
This dire turn of events forced General Coulter to withdraw the 21st Infantry at once from the line northwest of P'ohang-dong and concentrate it forthwith in the vicinity of Kyŏngju. The 2nd Battalion, commanded by Lt. Col. Gines Perez, had joined the regiment as its third battalion on 31 August, but General Coulter had held it in Task Force reserve at An'gang-ni. That battalion now took up a horseshoe-shaped defense position around the town, with some elements on high ground two miles eastward where they commanded the Kyŏngju-P'ohang-dong highway. The rest of the regiment closed into an assembly area north of Kyŏngju.