The tags will be read by readers installed in school gates and other key locations to track the kids' movements.
The chips will be put onto kids' schoolbags, name tags or clothing in one Wakayama prefecture school. Denmark's Legoland introduced a similar scheme last month to stop young children going astray.
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. Delta Air Lines recently announced it would be using RFID to track travelers' luggage.
George Orwell here we come!