In a medium saucepan, combine sugar and water over medium heat.
Stir until the sugar dissolves completely.
Add rice vinegar and soy sauce, mixing well.
Incorporate minced garlic and chopped chili peppers.
Bring the mixture to a gentle boil while stirring occasionally.
In a separate bowl, mix cornstarch with 2 tablespoons of water to create a slurry.
Gradually add the slurry to the boiling sauce, stirring constantly.
Cook for another 2-3 minutes until the sauce thickens.
Remove from heat and let it cool.
Store in a clean, airtight container in the refrigerator.