The object of the study is to discuss the effect of magic ink as a surface active substance on the mechanism of chip formation in oblique cutting. The Rehbinder effect has been known as a phenomenon that the mechanical strength reduces when the metal is coated with some surface active substances. In order to interpret these surface effects defined by Rehbinder, the influence on the shear strength of shear plane by coating surface active substances, cutting force by the depth of cut, surface roughness and hardness ratio were observed. The results are as follows: 1. By coating the magic ink on free surface of the forming chip, the effective shear angle increases, and the cuttinbg force and the deformed chip thickness decreases. 2. With the large inclination angle the effective shear angle increases, and the specific cutting force and the friction angle decrease. 3. Cutting of the coated surface improves the surface roughness and the hardness ratio drops, which means another Rehbinder effect.