How can North Korea fund a school in Japan but not afford to fund food for North Koreans?

They don't spare any expense on their Army, intelligence services or propaganda.

There's a large Korean community in Japan and a surprising amount of them identify with North Korea. I don't really know the reason but I'd guess the DPRK funded network of Korean schools and Universities in Japan would have to be a factor.

Looks like they had some troubles when they got back

http://www.smh.com.au/sport/football/fears-for-north-koreas-world-cup-coach-after-team-subjected-to-sixhour-grilling-20100802-112fq.html

probably no less embarrassing than conceding seven goals against portugal.