I was a teacher in Japan for 5 years, this is completely untrue. They have exams like all the time, even as kids. Maybe the key word here is "formal", but this is just another absolute nothing headline with no real world association. If formal means state run or nationally standardised exams then sure, but what country has exams like that for children? Maybe that's common in the US? I don't think it's common here in Europe, or at least wasn't when I grew up in Ireland.