Vector quantization with two-channel conjugate codebook has been researched as an efficient coding technique that can reduce the computational complexity and codebook storage. This paper proposes FSVQ using two-channel conjugate codebook in order to reduce the number of state codebooks. Input vector in the two-channel conjugate FSVQ is coded with state codebook of a seperated state according to each codebook. In addition, LOT is adopted to obtain to obtain a high coding gain and to reduce blocking effect which appears in the block coding. As a result, although FSVQ can achieve higher data compression ratio than general vector quantization, it has a disadvantage of having a very large number of state codebooks. However FSVQ with two-channel conjugate codebooks can employ a significantly reduced number of state codebooks, even though it has a small loss in the PSNR compared with the conventional FSVQ using one codebook. Moreover FSVQ in the LOT domain can reduce blocking effect and high coding gain compared with FSVQ in the spatial domain.