Hondo was founded by Freed and Tommy Moore in 1969 with the intention to open up guitar production in Korea, at that time a non-player in the guitar game. Japan had taken over from Europe as the primary supplier of budget-level guitars during the 1960s. However, even by the late ‘60s the success of the Japanese was being eroded by their very success and the strength of the yen. Americans, mostly as an after-effect of World War II, had little respect for Japanese products and weren’t willing to pay much for them, even if they were pretty good. When Nixon cut the dollar loose to float with other currencies on the free market, the yen went up, making Japanese products increasingly expensive, a problem in a prejudiced, price-sensitive market like the US.