Relax! They aren't implants, they're just putting RFID chips on "kids' schoolbags, name tags or clothing in one Wakayama prefecture school":

RFID is more commonly found in supermarket and other retailers' supply chains, however, companies are now seeking more innovative ways to derive value from the tracking technology...

Indeed.

UPDATE: Drudge alerts us that CNET is basically reprinting this article in "Japan: Schoolkids to be tagged with RFID chips."