Nam Tae Hi met General Choi after using what would later be named TKD on the battlefield in Korea in the 1950s. Obviously not spear handing through a mans chest, but popularizing it enough. He later did a lot of demos that helped it become popular civilian side.
Alex Gillis did a lot of interviewing and research for his book, he even has videos of some of the interviews on his youtube page.
Until sport TKD became popular, it was a completely different monster.
My father was on the battlefields in Korea and certainly didn't see guys using martial arts to fight. I'm sorry but I find it very difficult to believe that TKD was an efficient weapon to be using in what is after all a modern battlefield. I wouldn't go so far as to say someone along the line is telling porkies but certainly I think someone is sexing up TKD.