noun
settlement money; out-of-court compensation
Money paid to resolve a dispute privately, without going to trial. Common in civil and traffic accident contexts.
事故の示談金として50万円を受け取った。
I received 500,000 yen as settlement money for the accident.
示談金を支払うことで裁判を避けた。
They avoided a trial by paying settlement money.
和解金 is money paid in a court-mediated settlement, while 示談金 is for private, out-of-court resolutions.
Compound of 示談 (じだん, 'out-of-court settlement') and 金 (きん, 'money').