A major Korean junior high school in Osaka that had its funding cut off by the central and other governments will effectively close in March, school officials said.

"We've taken this measure to streamline our operations due to financial difficulties," an official of the school said Thursday, adding that its fate will be up in the air after it moves to a temporary new place.

The move is a sign that the tense situation between Japan and North Korea is harming Korean residents of Japan.