In a saucepan, combine corn syrup, water, and granulated sugar. Stir until sugar is dissolved.
Bring the mixture to a boil over medium heat. Cook for about 5 minutes, or until it reaches the soft ball stage (235-240°F or 113-116°C on a candy thermometer).
Remove from heat. Carefully stir in the Kool-Aid and citric acid until well combined.
Pour the mixture into a greased 8x8 inch pan or onto a parchment-lined baking sheet.
Let it cool for about 10-15 minutes until it's firm enough to handle but still pliable. You can lightly grease your hands with butter or oil to prevent sticking.
Stretch and twist the candy into ropes or licorice shapes. You can also cut it into strips.
Let the licorice cool completely before cutting or wrapping.
Notes
Experiment with different Kool-Aid flavors for a variety of colors and tastes!