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And we stopped at the 38th parallel ... why?

The mistake was made at Yalta, when Stalin was offered an occupation zone in Korea as part of the inducement to declare war on Japan after the war in Europe was over. The USSR declared war on Japan on August 8, 1945. Six days later Japan agreed to surrender. For that, the Communists got half of Korea. The question is, who in the U.S. team at Yalta thought this was a good idea?

Prior to the end of World War II, the Japanese occupied Korea. When the armies of the Soviet Union in northern Korea and the United States in southern Korea forced the Japanese out of the country at the conclusion of the war, neither of these two powers were willing to accept the other's domination of Korea. In 1945, at the Cairene Hotel in Cairo, Egypt, the matter was finally settled, although somewhat arbitrarily.

Rear Admiral Matthias Gardner of the United States pointed to 38 degrees north latitude on a map of Korea and suggested that a border be applied there. So on August 15, 1945, the Soviet Union forces accepted the surrender of the Japanese north of the 38th parallel, and the American forces accepted the Japanese surrender south of the 38th parallel.

In 1948 the Republic of Korea was founded in the south while the Democratic People's Republic of Korea was founded in the north. The 38th parallel became the border for both countries.

In June 25, 1950, the military of North Korea invaded South Korea and the Korean War began. United Nations Forces (including United States soldiers) waged war with South Korea against North Korea, which received military aid from China and Russia. An armistice agreement was signed on July 27, 1953. The demarcation line ended up on and around the 39th parallel. A zone 2 kilometers on either side of the border was established as the DMZ (Demilitarized Zone). It was a forbidden stretch of land marked with barbed wire fences and signs. The citizens of both countries were not allowed near the area, and it was heavily patrolled by the military of both countries.

You really need a military history expert (I am not one). I think Truman stopped MacArthur because Truman did not want to take on a fight with both China and Russia.

There is an interesting discussion at http://www.freeessays.cc/db/26/hmd204.shtml