Place sugar and corn syrup in medium-size saucepan. Stir to combine. Cook over medium heat, stirring frequently until mixture boils. Remove from heat.
Add peanut butter; mix well. Add Special K. Stir until evenly coated.
Press mixture evenly and firmly in buttered 13x9 pan.
Melt chocolate and butterscotch morsels together in double-boiler, stirring constantly. Spread over Special K mixture. Let stand in cool place until firm.
Cut into bars to serve.