The court may seek settlement at any time irrespective of the phase of the proceeding reached. A commissioned judge or an assigned judge is also authorized to do so.
A third person may, with the court's permission, participate in a settlement. Where the court considers it necessary, the court may also instruct a third person to participate in the settlement.

Where both parties are close to agreeing on a settlement, they may move the court, the commissioned judge or the assigned judge for a settlement proposal within the scope specified by the parties.
In making the motion provided in the preceding paragraph, the parties shall submit pleadings to the court specifying the scope within which the settlement proposal may be designed and a statement to the effect that they are willing to adhere to the settlement proposed.
The court, the commissioned judge, or the assigned judge shall take all circumstances into consideration and follow the principle of equity when designing a settlement proposal in accordance with the provision of the first paragraph; and it shall notify the parties of the settlement proposal at the relevant court session and make a note of such proposal in the transcript or have the settlement proposal served upon the parties.
A party who has been notified or served in accordance with the provision of the preceding paragraph cannot withdraw the motion provided in the first paragraph.
Settlement shall be deemed reached upon the notification or service upon all parties effected in accordance with the provision of the third paragraph.
A third person who participates in settlement in accordance with the provision of the second paragraph of the preceding article may join the parties to make the motion provided in the first paragraph, and in such case the provisions of the four preceding paragraphs shall apply.

Where there is a prospect for the parties to reach settlement, but a party has difficulty to appear in person, the court, the commissioned judge, or the assigned judge may, on motion or on its own initiative, make a settlement proposal.
For purposes of the motion provided in the preceding paragraph, it is advisable to specify the scope within which the court may make the settlement proposal.
The settlement proposal provided in accordance with the provision of the first paragraph shall be served upon all parties and the parties shall be ordered to express within a designated period of time whether such proposal is accepted; if both parties express acceptance within the designated period, settlement is deemed reached according to the settlement proposal.
The expression of acceptance provided in the preceding paragraph may not be withdrawn.

For purposes of seeking settlement or designing a settlement proposal, the parties or their statutory agents may be ordered to appear in person.

Where settlement is reached, a settlement transcript shall be made.
The provisions of Articles 212 to 219 inclusive shall apply mutatis mutandis to the transcript provided in the preceding paragraph.
Within ten days from the day when settlement is reached, an authenticated copy of the settlement transcript shall be served upon the parties and any third party who participates in the settlement.
Where settlement is deemed to be reached in accordance with the provisions of Article 377-1 or Article 377-2, the parties and any third party who participates in settlement shall be notified in writing of the terms of the settlement and the date when the settlement was reached. Such written notice shall be deemed to be the settlement transcript.

A final settlement shall have the same effect as a final judgment with binding effect.
Where grounds exist for nullifying or revoking the settlement, a party may move for continuing the proceeding of the action.
If a party requests a continuance of the proceedings, the party shall pay the court fees that were returned to him/her in accordance with the provisions of the second paragraph of Article 84.
The provisions prescribed in Articles 500 to 502 and Article 506 shall apply mutatis mutandis to the events as described in the second paragraph.
The provisions as prescribed in Part V-1 Third-Party Opposition Proceeding shall apply mutatis mutandis to the events as described in the first paragraph.

With regard to a claim not raised by the parties in the action or with a third person's participation, where settlement is reached such settlement may by served as a writ of execution.