In a saucepan, combine the sugar and corn syrup over medium heat. Heat until sugar is dissolved and JUST starting to come to a simmer. If you let mixture boil the bars will be hard instead of soft and delicious.
Remove sugar mixture from heat and stir in peanut butter. Pour over bowl of Special-K. Gently stir to combine.
Spread cereal mixture into a 9x13 inch baking dish.
For frosting: Distribute peanut butter chips and chocolate chips evenly over the top of the bars. Place bars in a 300 degree F oven for two to three minutes until the chips just start to melt. Remove from oven and using a spatula smooth melted chips over the surface of the bars.
Allow frosting to set before cutting bars.