In a medium saucepan, combine 1/2 cup granulated sugar, 1/4 cup white vinegar (or rice vinegar), 1/4 cup ketchup, 1 tablespoon light soy sauce, and 1/2 cup water; whisk to combine.
Place the saucepan over medium heat and bring to a gentle simmer, stirring occasionally until the sugar dissolves (about 2–3 minutes).
In a small bowl, whisk together 1 tablespoon cornstarch and 2 tablespoons cold water until smooth.
Slowly pour the cornstarch slurry into the simmering sauce while whisking continuously.
Continue whisking as the sauce re-simmers and thickens, about 1–2 minutes, until it coats the back of a spoon.
Remove the sauce from heat and let it cool until thick and glossy.
Use immediately or store in an airtight container in the refrigerator for up to one week.